PracticeConsultingProposals published to reform audit of parish councils

Proposals published to reform audit of parish councils

The audit regime for parish councils is 'unsustainable' according to the Audit Connission which has set out proposals for reform in a new document.

The paper intends to ‘stimulate debate’ over the issue of auditing of small local authorities an puts forward a number of ideas for discussion, some of which are likely to prove controversial.

Among the ideas on the table are introducing a ‘lighter touch’ regime that might exempt some local councils from audit completely; raising the audit fee to reflect the real costs involved in audit or relaxing the Accounts and Audit Regulations.

Perhaps the most controversial idea is changing the model of audit supply by creating a monopoly or bringing in new suppliers.

The Big Firms, especially KPMG, have long argued that not enough of the audit market from the Commission is open to them, though they are unlikely to want to commit to might be small amounts of work.

Martin Evans, director of policy at the Commissiion, said:’Local councils as well as the Audit Commission and its auditors now consider that the present audit regime is unsustainable.

‘The aim of this paper is to stimulate a debate on the changes necessary to improve the audit process for both local councils and auditors alike.’Responses to the Commission’s discussion paper, The Audit of Parish, Town and Community Councils, have to be with the Commission 30 September and comes as the first in a series of so-called think pieces intended to open up debate on a number of issues.

Audits open to smaller firms

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer