FRC consults on Regulations and Guidance for Local Public Audit
News types: Consultation Announcement
Published: 21 July 2014
The Audit and Accountability Act 2014 provides for the abolition of the Audit Commission and establishes a new framework for the regulation of auditors of local public bodies that reflects the current framework for the regulation of company auditors. The Government has asked that the FRC takes on specific responsibilities including:
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inspecting the quality of the audits of the largest local public bodies and health bodies other than Foundation Trusts;
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overseeing the regulation of auditors of local public bodies by professional bodies the FRC recognises for this purpose; and
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setting specific statutory requirements on auditors.
The consultation document seeks views on statutory requirements:
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for transparency reports, which the 2014 Act requires that auditors of major local bodies publish each year;
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for keeping the Register of Local Public Auditors;
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giving statutory guidance to a recognised supervisory body on the approval of individuals as Engagement Leads for local public audit.
Paul George, Executive Director, Conduct said:
“This consultation seeks to strike an appropriate balance between recognising the particular challenges of local public audit and consistency with the arrangements for regulating company auditors. We would welcome views in particular from local public bodies.”
Notes to editors:
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The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.