PSAA welcomes MHCLG’s local audit reform strategy, which follows on from Monday’s announcement of the intention to create a new local audit body. We are strong advocates of overhauling the local audit system. Despite sustained and determined effort by system partners the current arrangements have not enabled resolution of the issues. This has resulted in the need for the backlog solution, which includes auditors issuing hundreds of disclaimed audit opinions, and disclaimed opinions being likely to continue for some bodies for a number of years.
The strategy provides a vision of a more cohesive system where local audit is geared to the needs of the sector, providing assurance over the use of public money and reporting promptly where there are concerns.
However, the strategy also highlights the extent of the change that is needed, the difficult decisions that lie ahead and the hard work that will be needed to implement them effectively.
Once again, we restate our full commitment to doing all we can to work with partners to help deliver an effective audit regime that is in the public interest.
Our Chair, Bill Butler, said;
‘The local audit strategy recognises the current unacceptable reality and what is needed to ensure that local audit provides the taxpayer with a much better deal. It provides clarity on what needs to change in key areas, but encouragingly also reaches out to the sector and all interested parties for views on a range of crucial elements where the best way forward is less clear. As we have said previously, the fragmented local audit system needs fundamental reform, and we will support the changes to be made. We will continue to work with our partners to improve the current situation and look forward to helping MHCLG to prepare the ground for it and a brighter future for local audit.’