The company was formed by the current management and employees of the existing in-house team following a management buy-out.
This is one of the largest public sector internal audit contracts to be awarded to the private sector. It covers the review of the adequacy, reliability and effectiveness of the city council's systems of internal control and the investigation of all aspects of fraud, including housing benefit fraud, student awards and car parking permit fraud.
The new company will provide consultancy and train staff in preventive anti-fraud techniques and control assessment.
'I am very pleased with the award of this contract, which will allow the team's managers and staff to continue to provide high quality, cost effective services to the council. Combating fraud and safeguarding the public purse is tremendously important.'
The£6.5m contract commenced on 1 June 1998 and will run for six years and ten months.