The Liberal Democrats are gearing up to talk to the ICAEW about an audit of their expenses after moves to put MPs spending under the spotlight were shot down last week.

The institute is set to meet with the party's Chief Whip in the next few weeks to discuss the issue, an ICAEW spokesman said.

MPs of the political party are thinking about having their receipts studied by the ICAEW in regular spotchecks under the proposals, which have been floated to help restore the public's confidence in the expenses system after a number of scandals.

The institute may also help the Lib Dems consider how to introduce other reforms, such as a ban on using taxpayers' money to buy furniture, the FT reported.

The job would be the latest in a string of high profile government engagements if the ICAEW come to terms with the Lib Dems. The institute is also helping the Treasury search for an adviser to value Northern Rock. The institute was also the venue for the Conservative's high profile launch of its ambitious fiscal reform study 'Making Taxes Simpler.'

' [The ICAEW] is happy to work with any political party,' the spokesman added.

Further reading:

Howe unveils tax overhaul plans at ICAEW

Izza wins tough Northern Rock job