Audit committees are one of the most important parts of public sector governance. With new standards now in force and the risk landscape changing fast, 2026 is a good moment for boards to ask whether their audit committee is genuinely fit for purpose.
Here are the key areas to focus on.
What are the new internal audit standards for UK public sector boards in 2025?
From 1 April 2025, the Global Internal Audit Standards (GIAS) replaced the Public Sector Internal Audit Standards. As well as maintaining established audit practices, the new standards place greater emphasis on the strategic value that internal audit should deliver.
All UK public sector bodies are required to implement the GIAS alongside the Application Note, and local government bodies must also apply CIPFA’s Code of Practice for the Governance of Internal Audit.
The new standards include essential conditions for the governance of internal audit, covering resourcing, the qualifications of the chief audit executive, and the audit committee’s role in approving or recommending approval of the internal audit charter.
In practice, this means reviewing your internal audit charter, checking that audit planning and reporting reflects the new framework, and building up evidence of conformance. If your board hasn’t worked through these changes, that is the place to start.
Why does audit committee independence matter in the public sector?
An audit committee needs to be able to challenge management. CIPFA has been clear that committees without independent members risk lacking the knowledge and experience to function effectively, and that a committee not held in high regard by staff or elected members will struggle to have real influence.
It is also worth checking how the committee sits within your governance structure. Organisational independence is most effectively achieved when the chief audit executive reports functionally to the board, with free and unfettered access to the chief executive and the audit committee chair. Audit committees work best when they are focused. The effectiveness suffers when the committee is also expected to handle scrutiny, standards, or general purposes functions.
What skills should a public sector audit committee have?
Effective oversight requires that committee members bring relevant expertise to the table. At least one committee member should have recent and relevant financial experience, and the committee should have skills relevant to the sector. Structured training, including input from external experts on specialist areas, should be part of the committee’s regular rhythm.
Given how rapidly cybersecurity risks are evolving, audit committees overseeing these areas will benefit from having a member with a technology background. Leading audit committees are building regular deep dives and training sessions into their rhythm, covering topics such as cyber, AI, sustainability, and regulatory and geopolitical change. If your current committee does not have that coverage, it is worth factoring into your next recruitment cycle.
How should public sector audit committees oversee AI and cyber risk?
AI governance has become a significant focus in 2026 as organisations move from pilot projects to wider deployment, and the UK Government is actively working to develop AI assurance tools and professionalise AI assurance more broadly. In the public sector, unclear accountabilities around AI mean governance gaps remain a real risk.
Audit committees should be asking direct questions about how their organisation is managing AI-related risks and cyber threats, and internal audit plans should reflect these priorities explicitly. Boards and audit committees must also ensure that human oversight of AI outputs is maintained, with decision-making authority remaining firmly with directors rather than being delegated to automated systems.
How often should a public sector audit committee review its own effectiveness?
CIPFA recommends that public bodies actively seek out learning from peers, regulators, and the experiences of other organisations, including where things have gone wrong elsewhere. Periodic effectiveness reviews of the audit committee itself should be a fixture. Strong audit committees make continuous learning a key part of how the committee operates, regularly reviewing how economic, regulatory, and technological change affects financial reporting and risk management.
FAQs
What makes a public sector audit committee effective?
An effective audit committee combines independence, relevant financial and sector expertise, a strong working relationship with internal audit, and a regular cycle of self-review. Effectiveness is about the quality of scrutiny the committee is able to apply and whether its findings drive real change.
What are the new internal audit standards for the public sector?
The Global Internal Audit Standards (GIAS) replaced the Public Sector Internal Audit Standards from 1 April 2025. They apply to all UK public sector bodies and place greater emphasis on the strategic value of internal audit. Local government bodies must also follow CIPFA’s Code of Practice for the Governance of Internal Audit alongside the GIAS.
How many independent members should a public sector audit committee have?
CIPFA guidance recommends that audit committees include independent members who bring relevant knowledge and experience from outside the organisation. The exact number will depend on the type and size of the body.
How can a board portal support public sector audit committee effectiveness?
Public sector boards need the right tools to support structured, transparent, and well-documented audit committee governance. Convene is a secure board portal used by NHS trusts, local authorities, housing associations, universities, and charities across the UK and Ireland. Here is how it helps audit committees work more effectively.
- Action tracking: Log and monitor actions between meetings so audit findings are followed up, not forgotten.
- Secure document library: Keep internal audit reports, risk registers, and governance documents in one permission-controlled place.
- Pre-meeting annotations: Let members review and annotate papers before the meeting, so discussions are sharper on the day.
- Minutes and decision records: Maintain a clear, timestamped record of committee decisions to support accountability.
- Access on any device: Give members reliable access to board materials on desktop, tablet, or mobile, online or offline.
Strengthen your public sector audit committee governance with Convene
See how NHS trusts, local authorities, housing associations, universities, and charities are using Convene to support better audit committee oversight.
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