Source · Select Committees · Public Accounts Committee
Recommendation 31
31
PSAA noted that the audit firms carried out extensive training programmes for their staff, but...
Conclusion
PSAA noted that the audit firms carried out extensive training programmes for their staff, but that it was important to ensure these programmes covered training on the specific aspects for audits of local authorities.88 Grant Thornton informed us that it was the largest trainer of students through CIPFA, but that it took a long time to train people from joining the firm to becoming public sector specialists. EY added that the ICAEW was looking urgently at the requirement for people to have at least three years’ experience of oversight of delivering audits of local bodies before they could gain accreditation as key audit partners.89 The declining commercial attractiveness of auditing local authorities
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.