Source · Select Committees · Public Accounts Committee
Recommendation 30
30
The Department reported that it was working closely with the Financial Reporting Council (FRC), the...
Conclusion
The Department reported that it was working closely with the Financial Reporting Council (FRC), the Chartered Institute of Public Finance and Accountancy (CIPFA) and 75 Local Government Association submission, page 2 76 Institute for Chartered Accountants in England and Wales submission, pages 1, 4 77 Qq 12, 42, 46 evidence session of 20 May 2021 78 Q 43 evidence session of 20 May 2021 79 Q 46 evidence session of 20 May 2021 80 Q 12 evidence session of 20 May 2021 81 Qq 29, 30 evidence session of 17 May 2021 82 Local Government Association submission, page 2 83 Q 53 evidence session of 17 May 2021 84 Q 54 evidence session of 17 May 2021 85 Institute for Chartered Accountants in England and Wales submission, page 4 18 Local auditor reporting on local government in England others to ensure there were enough skilled auditors to meet the needs of the market.86 It noted that the FRC was leading a working group with stakeholders to look at factors affecting the supply of audit staff, such as entry criteria and skills development. The Department wanted to make the process for auditors to gain key audit partner status as slick as possible to encourage more people, but it also recognised that increasing the supply of people with the necessary skills would be a long-term issue.87
Government Response
Not Addressed
HM Government
Not Addressed
4.3 The department committed in its December 2020 response to working with the Chartered Institute of Public Finance and Accountancy (CIPFA), the Financial Reporting Council (FRC), the Institute of Chartered Accountants in England (ICAEW) and Wales and other stakeholders on both improving auditor training and reviewing the entry requirements for Key Audit Partners and to strike an appropriate balance between ensuring audit quality and market sustainability. The public consultation published on 28 July 2021 sets out proposals from a sector lead working group for delivering this, including to amend Key Audit Partner guidance to facilitate additional routes, as well as proposals to develop a new training offer, and the department is seeking views on whether these activities, or further action, are required to support the pipeline of future auditors, and support new entrants into the market. Alongside this, the Department for Business, Energy and Industrial Strategy (BEIS) is also considering responses to the consultation on its White Paper that includes proposals for increasing competition in the wider audit market.