05 Jan 2012
LOCAL AUTHORITIES will be free to appoint their own independent auditors from an open market under proposals formalised by the government yesterday.
The Department for Communities and Local Government published proposals on the audit of local government following the abolition of the Audit Commission. Under the proposals, councils and other public bodies will be able to appoint their own auditors. This will be regulated by the National Audit Office and the Financial Reporting Council.
Further reading
The government has said that it intends to publish a draft bill to formally close down the commission by Spring this year.
Local government minister Grant Shapps (pictured) said: "We are taking another step down to road to replacing expensive centralised local public audit with a more streamlined and competitive local audit structure. Councils are already showing they can be open and accountable - publishing details on their day to day business from spending to structure and taking control of their own auditing affairs."
"The plans will see "Whitehall take another step back so that councils can begin to take ownership of their new audit system", he added. "Robust and independent external audit will continue. We want councils to be part of how we create a better, more efficient and transparent audit service that offers best value for money and properly serves taxpayers."
Ian Carruthers, policy & technical director at CIPFA, said the government's response was "helpful" but added "there remain areas for concern, and considerable further work is required to develop the detailed practical guidance necessary for individual bodies to implement the government's proposals consistently and cost-effectively".
You may also like
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
Visitor comments Add your comment