The Public Audit (Wales) Act 2013 requires the Auditor General for Wales to issue a Code of Audit Practice prescribing the way in which audit and certain other functions of the Auditor General are to be exercised.

The code is important as it sets out the approach in which public sector audit is undertaken in Wales. This includes being the mechanism by which compliance with international auditing standards is required.

The code requires updating due to changes and other significant factors in the context in which audit and related functions are undertaken, including:

• resource constraints across the public sector;
• developments in technology, especially use of generative artificial intelligence;
• further development of international auditing standards and the Financial Reporting Council’s Ethical Standard, and
• recent changes in legislation.

The key proposed changes are:

• Strengthening emphasis on proportionality
• Specific requirement for the application of professional scepticism
• Strengthening provisions on independence

Click here to view Consultation on revision of the Code of Audit Practice of the Auditor General for Wales questions.