2 Introduction
6. I have set out in this report the background to
the review, the objectives of the corporate governance framework,
a comparison of the current corporate governance of the NAO against
best practice and arrangements in other countries, my proposal
for the future governance of the NAO, the relationship between
the NAO and the Audit Commission and other comments.
7. During my review I have interviewed all members
of the NAO Senior Management Board other than its Chairman (the
C&AG, with whom I have had a brief conversation) and all members
of the Audit Committee, a number of senior officials in government,
the Chairman and Chief Executive of the Audit Commission, the
Auditor Generals in Northern Ireland, Scotland and Wales and the
Auditor Generals of Sweden and Canada. I met with the Public Accounts
Commission at the start of my review. I have invited input to
my review from interested parties and have received 14 submissions.
I am most grateful to all who have contributed to my review.
8. The position of the C&AG was established by
the Exchequer and Audit Departments Act 1866. Three further Acts
of Parliament have established the authority of the C&AG,
most notably the National Audit Act 1983. This Act gives the C&AG
complete discretion in the discharge of his functions. It also
says there shall be a National Audit Office, whose staff shall
be appointed by the C&AG. To support him, the C&AG has
set up a Senior Management Board (which he chairs) and a Management
Committee (chaired by the Deputy C&AG). There is also an Audit
Committee.
9. The C&AG is accountable to the Public Accounts
Commission (TPAC), an all party committee of MPs. The Commission
examines the NAO's Supply Estimate (the annual budget), appoints
the Accounting Officer (currently the C&AG) and appoints the
external auditors.
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