Firms refuse Dame Shirley's plans for Audit Commission
Accountancy firms have largely rejected proposals from the former leader of Westminster City Council, Dame Shirley Porter, for radical reforms to the way the Audit Commission appoints them to carry out public sector work. In a submission to the Nolan Committee review of local government, Dame Shirley said that the Audit Commission should also undertake not to discriminate against firms undertaking work for respondents in an audit inquiry.
A spokesman for Porter added: ‘If firms are to do public sector audits, they should be paid for by and answerable to the Audit Commission. Otherwise the taxpayer has no way of knowing that they are getting value for money.
We sought out large firms to take on our case but they came back to us and said they couldn’t act on our behalf because they were worried about losing work from the Commission. Lawyers would not have a problem but accountants don’t have the guts to stand up for themselves. It just shows the profession is not robust. Chinese walls mean that large firms should be able to work on both sides, although obviously not the same people.’
Porter’s legal team relied on evidence from three medium-sized firms, Chantrey Vellacott, Robson Rhodes and Stoy Hayward. A Chantrey Vellacott spokesman said: ‘What she’s saying is a general point which she obviously feels is necessary to make. I’m not aware that we have been discriminated against. We would have faith in the integrity of the Commission.
The Audit Commission declined to comment.
