Recommendation 9

The C&AG qualifies his audit opinion when material issues are identified in a body’s accounts that it cannot correct.20 The C&AG issued 17 qualified audit opinions across the accounts of 14 different government bodies for 2024–25.21 The most common reasons for qualifications were lack of sufficient audit evidence (six qualifications) and material levels of fraud and error being detected (also six qualifications).22 Moreover, there are some government departments such as the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) where ongoing qualifications due to fraud and error have persisted for the last 36 and 20 years, respectively.23 We think this embedded culture is unacceptable and suggest that the HM Treasury begins discussions as to how these accounts can be regularised within a reasonable timescale. 14 Q 3 15 Q 19 16 Qq 8, 9 and 14; C&AG’s report, para 1.11 17 Qq 16-17 18 Q 16 19 Q 7 20 C&AG’s report, para 1.15 21 C&AG’s report, para 1.17 22 C&AG’s report 1.17 23 Qq 15, 22 and 23 8