Eleventh Report - Local auditor reporting on local government in England

Select Committee
Public Accounts Committee HC 171 14 July 2021
Report Status Government responded
Conclusions & Recommendations 34 items (5 recs)
Source View on Parliament website
Government Response (AI assessment · 33 of 34 classified)
Accepted 21
Accepted in Part 1
Acknowledged 6
Not Addressed 5
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Eleventh report from Session 2021-22 · published 28 Oct 2021
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Recommendations & Conclusions

6 results
9 Conclusion Acknowledged
We pressed the Department on when we would see improvements in the timeliness of local...
Conclusion
We pressed the Department on when we would see improvements in the timeliness of local authorities publishing their audited accounts. The Department felt that it would not be possible to bring timeliness back on track in one audit cycle in … Read more
Government Response Summary
The government has already taken steps such as extending audit deadlines, providing £15 million to local bodies, and amending regulations to improve timeliness. It is consulting on broader proposals and will provide further updates later in 2021, committing to review the audit deadline after 2021-22 audits.
HM Treasury
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23 Conclusion Acknowledged
We pressed the Department on what it was doing to encourage a greater number of...
Conclusion
We pressed the Department on what it was doing to encourage a greater number of audit firms to carry out audits of local authorities. The Department agreed that maintaining capacity in the market for auditing local authorities was a serious … Read more
Government Response Summary
The government agrees on the crucial importance of auditor availability for market sustainability and acknowledges that more needs to be done to encourage additional firms into the market.
HM Treasury
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25 Conclusion Acknowledged
PSAA recently commissioned research into the market for auditing local authorities which found challenges and...
Conclusion
PSAA recently commissioned research into the market for auditing local authorities which found challenges and barriers to audit firms looking to come into the market. New firms have to invest in their staff over time to build the specialist knowledge … Read more
Government Response Summary
The government agrees that a ready availability of skilled auditors is crucial for the local audit market's sustainability and recognises that more needs to be done to encourage new firms.
HM Treasury
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27 Conclusion Acknowledged
We challenged the Department on the sustainability of firms auditing £100 billion a year of...
Conclusion
We challenged the Department on the sustainability of firms auditing £100 billion a year of spending by local government while relying on only a few hundred auditors with the requisite skills. The Department and PSAA recognised the challenge which audit … Read more
Government Response Summary
The government agrees on the crucial importance of skilled auditors for the long-term sustainability and quality of the local audit market. It acknowledges the current market's dependency on a few big suppliers.
HM Treasury
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28 Conclusion Acknowledged
PSAA highlighted that the age profile of key audit partners was a factor likely to...
Conclusion
PSAA highlighted that the age profile of key audit partners was a factor likely to increase the challenge which audit firms faced, in having sufficient staff.80 EY confirmed that it was facing a retirement issue for its key audit partners, … Read more
Government Response Summary
The government agrees that a ready availability of skilled auditors is crucial for market sustainability and quality, acknowledging that more needs to be done to encourage other firms into the market.
HM Treasury
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29 Conclusion Acknowledged
Sir Tony Redmond highlighted that his review found that the lack of career prospects and...
Conclusion
Sir Tony Redmond highlighted that his review found that the lack of career prospects and opportunities produced a real challenge for trainee accountants when considering whether to go into public sector accounting and auditing. He believed that audit firms needed … Read more
Government Response Summary
The government agrees on the crucial importance of skilled auditors for the long-term sustainability and quality of the local audit market. It acknowledges the current market's dependency on a few big suppliers.
HM Treasury
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