“We are pleased that the government is proposing to overhaul the local audit system in England. The crisis in local audit has been building in recent years to a point where the timely publication by local authorities of audited financial statements – the cornerstone of local financial accountability – has become an exception rather the rule.
“While the backstop process is a key step on the way to resolving the backlog of unaudited financial statements, it is important that more fundamental challenges facing local authority financial reporting and external audit are fully addressed so that local authorities can be properly accountable to local residents and their elected representatives.
“We therefore support the development of a clear vision for the local audit system, the establishment of a new Local Audit Office for England, and a mandatory requirement for local authorities to have audit committees. Each of these measures, together with other proposed reforms, should help improve the quality and understandability of local authority financial reports, the quality of external audits, and the value for money delivered by local authorities.”
ENDS
Notes to editors:
- More information on ICAEW’s vision for local audit.
- ICAEW’s response to the Statutory Instrument on local audit from September.
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