Save content
Have you found this content useful? Use the button above to save it to your profile.
Thinkstock

FRC consults on public body audit system

by
23rd Jul 2014
Save content
Have you found this content useful? Use the button above to save it to your profile.

The Financial Reporting Council (FRC) is consulting on plans to establish a new regulatory system for auditing public bodies after the abolition of the Audit Commission.

The UK accounting and audit regulator will be responsible for inspecting the quality of audits of the largest local public bodies and health bodies other than foundation trusts, overseeing the regulation of auditors of local public bodies by professional bodies the FRC recognises for this purpose and setting specific statutory requirements on auditors.

The new system is expected to be ready by April 2015.

It is expected to apply to audits of local public bodies for accounting periods ending 31 March 2018.

The FRC wants to hear views on statutory requirements introduced by the Local Audit and Accountability Act 2014, including for auditors to publish “transparency” about their firm (for example, giving information about ownership and governance and how it ensures the quality and independence of its audit) and giving statutory guidance to on the approval of individuals as “engagement leads” for local public audit. 

Paul George, FRC executive director, conduct said: “This consultation seeks to strike an appropriate balance between recognising the particular challenges of local public audit and consistency with the arrangements for regulating company auditors. We would welcome views in particular from local public bodies.” 

The government has said closing the Audit Commission will save it £1.2bn over 10 years, but MPs have said the new regime may create cosiness between councils and their private-sector auditors.

The FRC consultation ends on 17 October.

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.