Sir John Bourn, the nation’s most senior public sector auditor, is set to go through a potentially embarrassing review to determine whether he should stay on as chairman of the a key accounting watchdog.

Sir John, 73, is the chair of the Professional Oversight Board, which oversees practice accountants, but as part of a revamp of the Financial Reporting Council’s processes, he and other chairs of FRC committees will have to submit themselves for re-consideration for their current posts.

If Sir John was not reappointed, he would serve only five more months in the job. He will step down as head of the National Audit Office next year, after rows about his expenses led to allegations of conflicts of interest.

The FRC said that it had the highest regard for Sir John’s work as POB chair, but stopped short of fully endorsing his continuing in the role: ‘As with all chairs they will have to go through a review process. The decision will be made by the nomination committee.’

Sir John’s stated reason for leaving the NAO was that the POB would have oversight of his role at the public sector scrutiny body, but it is widely believed the expenses row is a significant factor in his departure.

Sir John had already said: ‘Under these new arrangements it would be incompatible for me to hold the positions of both C&AG and chairman of the POB board.’

Losing the POB role could further embarrass an otherwise highly distinguished career in public sector accounting.

The FRC added that it was too early to say if other candidates were going to be putting their hats in the ring for Sir John’s POB post.