Source · Select Committees · Public Accounts Committee
Recommendation 25
25
PSAA recently commissioned research into the market for auditing local authorities which found challenges and...
Conclusion
PSAA recently commissioned research into the market for auditing local authorities which found challenges and barriers to audit firms looking to come into the market. New firms have to invest in their staff over time to build the specialist knowledge and accreditation needed to carry out audits. A member of staff who leads an audit must also gain individual accreditation to become a key audit partner.69 EY added that key audit partners must have at least three years’ experience of oversight of delivering audits within this market.70 The Institute for Chartered Accountants in England and Wales (ICAEW) also felt that the requirements on key audit partners acted as a barrier to new entrants, even where audit firms did have audit partners with the experience that would make them eligible to apply.71
Government Response
Not Addressed
HM Government
Not Addressed
4.2 The government agrees that a ready availability of skilled and appropriately trained auditors is crucial to ensuring both the long-term sustainability of the local audit market and good quality, timely audit. As Sir Tony Redmond has noted in his review, the local audit market is currently dependent on a few big suppliers and more needs to be done to encourage other firms into the market to support long-term sustainability.