Adrian Johnson
TLDR: Ofwat blasted for lack of internal audits at water suppliers
Key points:
- A quarter of UK water companies do not have an internal audit function
- Many water companies are reporting significant financial losses
In a recent report, water regulator Ofwat has been criticized for the lack of internal audits at water suppliers in the UK. The report highlighted that a quarter of water companies do not have an internal audit function, despite many of them reporting significant financial losses. This raises concerns about the transparency and accountability of these companies, as internal audits play a crucial role in identifying risks and ensuring compliance with regulations.
Without proper internal audits, water companies may be more vulnerable to financial risks, cybersecurity threats, and operational inefficiencies. The lack of oversight could also impact the quality of services provided to customers and lead to increased costs for consumers.
It is essential for water companies to prioritize internal audits and establish robust mechanisms for monitoring and evaluating their financial performance. By implementing effective audit practices, these companies can improve transparency, accountability, and risk management, ultimately benefiting both their operations and their customers.
