Effective Audit and Risk Assurance Committees

An Audit and Risk Assurance Committee (ARAC) has a vital role in helping public sector organisations ensure that Accounting Officers and Boards gain the assurance they need on:

•  governance; 
• risk management;
• the control environment;
• the integrity of the financial statements; and
• other elements of the Annual Report and Accounts.

ARAC plays a crucial role in supporting the Board in meeting its obligations for setting an organisation’s risk appetite and ensuring that the framework of governance, risk management and controls is in place. This is highlighted in HM Treasury’s Corporate governance in central government departments: code of good practice guidance (April 2017).

This good practice guide draws on established best practice and the NIAO's experience working closely with many ARAC meetings across the NI public sector. It examines the role of ARACs in local government in Northern Ireland in
accordance with CIPFA’s Position Statement (2022) and how the principles apply to local government bodies in Northern Ireland.