PracticeAuditBig firms scoop up Audit Commission work

Big firms scoop up Audit Commission work

Grant Thornton picks up four Audit Commission contracts - DA Partnership picks up just one deal

Big firms scoop up Audit Commission work

LARGE FIRMS have scooped up the majority of the local government contracts up for grabs with the closure of the Audit Commission’s practice.

Grant Thornton was the biggest winner, picking up four contracts worth £41.3m a year. The five-year contracts cover the north-west, west Midlands, London (south) Surrey & Kent, and the south-west.

KPMG won three contracts, for Humberside & Yorkshire, east Midlands, and London (north). The contracts are worth £23.1m

Ernst & Young won two contracts worth £20m a year, covering two contract areas in Eastern and South East; and

DA Partnership, set up as a spinoff by Audit Commission head of practice Gareth Davies, won just one contract – for the north-east and Yorkshire – worth £5m a year. As a result of failing to win other contracts, the partnership cannot launch as an employee-owned independent firm. Instead it becomes a wholly-owned subsidiary of Mazars, trading as Mazars DA.

The contracts cover 70% of the Audit Commission’s work, with the appointments starting from 1 September. Audit Commission staff will transfer to the new suppliers on 31 October. The contract values are notional, based on proposed scale fees for 2012/2013.

The deals are expected to save public bodies more than £30m a year, with the commission looking to save £19m a year through internal efficiencies.

Chairman of the Audit Commission, Michael O’Higgins, said: “This procurement has been the result of a rigorous assessment of each bidder against published cost and quality criteria, and will mean significant audit fee savings for local councils, NHS trusts and other local bodies.

“Its outcome will promote a skilled, well-resourced and diverse public audit market. Only the Audit Commission could have delivered this, given its statutory powers and unique audit procurement arrangements.”

The other 30% of local government audits are already undertaken by the private sector, by: Deloitte; Grant Thornton; KPMG; PwC; and PKF. These contracts run until 2016/2017.

Related Articles

PwC to audit BBC pay policies following gender pay gap outrage

Accounting Firms PwC to audit BBC pay policies following gender pay gap outrage

2w Alia Shoaib, Reporter
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

2w Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

2w Alia Shoaib, Reporter
PwC fined $1m over Merrill Lynch audit

Accounting Firms PwC fined $1m over Merrill Lynch audit

2m Alia Shoaib, Reporter
Wetherspoons to replace PwC as auditor

Audit Wetherspoons to replace PwC as auditor

2m Alia Shoaib, Reporter
Latest Big Four auditor changes

Audit Latest Big Four auditor changes

4w Alia Shoaib, Reporter
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

1m Alia Shoaib, Reporter
Toshiba narrowly escapes delisting as PwC finally signs off on accounts

Audit Toshiba narrowly escapes delisting as PwC finally signs off on accounts

1m Alia Shoaib, Reporter