The Audit Commission's Code of Audit Practice requires auditors to prepare an annual audit letter and issue it to each audited body.
The purpose of preparing and issuing annual audit letters is to communicate to the audited body and key external stakeholders, including members of the public, the key issues arising from auditors' work, which auditors consider should be brought to the attention of the audited body. The annual audit letter covers the work carried out by auditors since the previous annual audit letter was issued.
Whilst the format of the letter is not prescribed it should highlight the key issues drawn from reports to those charged with governance and auditors' conclusions on relevant aspects of the audit. It should be prepared in clear language that is concise and accessible to a wide audience.
Annual audit letters are addressed to all members of local government bodies and directors of NHS bodies. Although some audited bodies are not subject to a statutory requirement to publish their annual audit letters, auditors encourage the audited body to publicise the availability of the letter. The Commission's decision to publish annual audit letters on its website is part of its objective to make its findings easily accessible to everyone.