Interim audit conclusions
The results of the interim phase of the 2006–07 audit for agencies covered in the interim report indicated that controls over business and accounting processes have generally been effective, with an overall decrease in the number and significance of audit findings from the previous year. Consistent with the results of our audits over recent years, agencies generally have in place appropriate governance, financial management and control regimes. However, most of the agencies had areas that required attention, particularly in relation to: key reconciliations; the recording and accounting for assets; the timely follow up of any discrepancies; controls over the processing of transactions in agencies’ FMIS and HMRIS; the management and exercise of delegations; and the maintenance of records.
In addition, the ongoing control weaknesses identified in relation to information systems, such as the breakdown in the management of user and systems access, and inadequate IT security and change controls, suggests that increased management attention is needed to provide assurance in this area.