Sutton-in-Craven Parish Council accounts are subject to an internal audit by an independant accountant. The internal auditor looks for areas of financial risk and signs a report on the annual return (required by law) to confirm that the system of control is working.
The government requires yet another audit to be carried out. The Audit Commission appoints auditors for all parishes in the country (known as external auditors) to carry out the final check. All but the largest councils with an annual turnover of £500.000 must complete a document called the annual return to confirm everything is in order. Different signed statements including the annual return assure the external auditor that the annual return accuratley represents the financial management of the council.