Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Deferred
Critically low number of ageing key audit partners threatens local audit resilience.
Conclusion
There are less than 100 key audit partners registered to perform local audits.52 We asked PSAA whether it felt there were enough audit partners in the market. PSAA described the number of key audit partners on the register as ‘worryingly low.’53 Audit providers themselves continue to warn of a ‘constrained and ageing pool of talent’ and we have reported before that most key audit partners are over 50 years old.’54 PSAA also 43 Q 22 44 C&AG’s Report, Paras 3.3, 3.4 45 TAR0001 para 1, TAR0012 para 4 46 Q 42 47 C&AG’s Report, Para 3.8 48 TAR0006 para 30; C&AG’s Report, Figure 5 49 C&AG’s Report, Para 3.8 and Figure 5 50 TAR0017 51 Q 43 52 C&AG’s Report, para 3.10 53 Q 78 54 TAR0012 para 4 ; PAC 2021 Report, para 28 14 Timeliness of local auditor reporting told us the market needed to build the resilience to manage the ‘inevitable’ movement of auditors between firms, avoiding risks like the recent case of Bournemouth, Christchurch and Poole where the departure of a single team member delayed the audit.55
Government Response Summary
The government agrees with the committee's observation. The Permanent Secretary has written to the Committee outlining the FRC's plans for a Local Audit Workforce Strategy and will provide a further update by the end of 2023 detailing the determined actions across the local audit system.
Government Response
Deferred
HM Government
Deferred
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The Permanent Secretary has written to the Committee alongside this Treasury Minute setting out FRC’s plans to progress the Local Audit Workforce Strategy and will write again before the end of 2023 setting out the actions the FRC, working collaboratively with system partners, has determined are necessary across the local audit system.