FRC publishes emerging findings from NHS audit market study
News types: Consultation Announcement
Published: 12 December 2024
The Financial Reporting Council (FRC) has today published initial feedback on its market study into the audit market for NHS providers and Integrated Care Boards (ICBs). Launched in July 2024 in response to growing concerns about challenges NHS bodies are facing in appointing and retaining auditors, this study has been designed to explore how the market is functioning, how it should function in the future, and better understand the complex challenges facing the sector as a whole.
Today’s report outlines feedback received to the FRC’s Invitation to Comment, our survey of NHS bodies, and extensive engagement with NHS bodies, audit firms and other system stakeholders. The emerging findings also provide market data on audit fees paid by NHS providers, audit firm engagements across the sector, and the timeliness of audits being delivered.
The study found that while most stakeholders considered the market to be functioning, there were issues raised which may risk future resilience in the market. Similar to the market for local government audits, some respondents raised concerns regarding potential constraints on market capacity as well as limited auditor choice. In addition, respondents highlighted issues with the procurement processes used for external audit within the NHS and differing views across stakeholders on the value and purpose of NHS audits.
The FRC recognises the importance of addressing any issues in the audit market for NHS providers and ICBs to prevent any future impacts on its resilience. The FRC therefore invites stakeholders to provide further input, responding to the questions set out in the emerging findings by emailing [email protected] by 6 February 2025. The FRC intends to publish the final report in Spring 2025.