Internal Audit Services

On behalf of the 'Client Group' (Water Services Regulation Authority (Ofwat), Office of Rail and Road (ORR), Professional Standards Authority, Equality and Human Rights Commission and Office of Qualifications and Examinations Regulation (Ofqual)), ORR led the procurement of Internal Audit Services. The Contract is underpinned by Ofwat's Statement of Requirements dated 16 August 2017 and the Supplier's tender dated 15 September 2017.

Services Required

Internal Audit Services The Customer's statutory accounts are audited by the National Audit Office (NAO), who fulfils the role of external auditor. It is essential that the Internal Auditor (IA) liaises and works effectively with the NAO to ensure internal audits are completed to a high standard and meet the NAO's assurance requirements for the external audit.

Objective The IA provider must provide an independent assurance service for management by measuring and evaluating the adequacy, reliability and effectiveness of management and financial control systems.

The IA will be required to make recommendations based on the appraisal of each system reviewed and to provide an annual assurance report to the Accounting Officer (AO) and Audit and Risk Assurance Committee (ARAC).

Scope and Key Tasks The Customer anticipates that circa 70 audit days will be used in each financial year. The Customer will agree actual days required at the commencement of each audit or request for audit advice.

The IA Plan will be agreed each year either just before or after the beginning of the financial year and after taking advice from ARAC. The IA will detail the audits expected to be required during the financial year.

In addition the following services are required:

1. Audit Advice - On-going throughout the Contract

Provide advice on audit and control related matters to the AO, managers and system owners on request.

2. Ad-hoc Service Provision

The Supplier may be required to carry out ad hoc work from time to time, such as:

• value for money reviews; • governance advice; • fraud investigations; • special investigations; or • reviews of areas of high regulatory risk.

The above list is not exhaustive.

Such work should only be undertaken with the approval of the Finance Director and General Counsel.