Financial Audits

General Principle

Every accredited school is subject to an annual financial audit, conducted by an approved auditor, in accordance with the WEQSC framework.

The purpose of the financial audit is to provide independent assurance that:

• The financial statements of the school present a true and fair view of its financial position;
• The school is a going concern;
• The school maintains adequate reserves to meet its obligations;
• The school complies with the financial governance requirements of the WEQSC framework.

Approved Auditors

A financial audit must be conducted by an approved auditor — an independent qualified accountant holding a current practising certificate from a recognised professional accountancy body, appearing on the WEQSC list of approved auditors, and having no material relationship with the school beyond the audit engagement.

The WEQSC list of approved auditors is maintained by the Secretariat and is published through the Institution Management Portal.

Scope of the Financial Audit

The financial audit must cover, at minimum:

• The annual financial statements of the school, prepared in accordance with the accounting standards applicable in its jurisdiction;
• The internal financial controls of the school, including the segregation of duties between authorisation and verification of expenditure;
• The reserves of the school, and their adequacy to meet the operating costs and the obligations of the school to WEQSC for a period of not less than three months;
• The compliance of the school with the financial governance requirements set out in the Standards and Compliance section of this portal;
• Any matter that may affect the ability of the school to continue as a going concern.

Audit Opinion

The approved auditor must express an opinion on the financial statements of the school. The opinion may be:

• Unqualified — The financial statements present a true and fair view;
• Qualified — The financial statements present a true and fair view, except for a specified matter;
• Adverse — The financial statements do not present a true and fair view;
• Disclaimer — The auditor is unable to express an opinion.

A qualified opinion, an adverse opinion, or a disclaimer of opinion may constitute grounds for further action under the audit framework, including the requirement for a corrective action plan, provisional accreditation, or suspension.

Reporting

The approved auditor must submit the audit report to the Senior Officer of the school and to WEQSC through the Institution Management Portal.

The audit report must be submitted within ninety days of the end of the financial year of the school.

Corrective Action

Where the financial audit identifies a deficiency, the school must submit a Corrective Action Plan in accordance with the audit framework. The CAP must set out how each deficiency will be addressed, by whom, and by what date.

Breach — Consequences

A failure to submit a financial audit report within the required period, or a failure to comply with the requirements of this page, is classified as a Major Finding and may result in provisional accreditation, suspension, or termination.

Conclusion

The financial audit is the instrument through which the financial integrity of an accredited school is verified. All financial audit procedures not expressly set out in this portal must follow the Secretariat's official bylaws.