Local Audit Framework: technical consultation

Closed 22 Sep 2021

Opened 28 Jul 2021


Sir Tony Redmond, in his review of the effectiveness of external audit and transparency of financial reporting in local authorities made a number of recommendations.

In May we published an updated response to the Redmond Review of Local Authority Financial Reporting and External Audit which outlined our thinking on Sir Tony’s key finding about a lack of ‘system leadership’ in the local audit system.  We set out our proposal that the Audit Reporting and Governance Authority, ARGA, the new regulator being established to replace the Financial Reporting Council (FRC) should act as the system leader for local audit within a new, simplified local audit framework.

We are now consulting on the technical implications of this review.

We also direct readers to our consultation outcome on the allocation of £15m to local bodies for audit and our consultation outcome on Amendments to local audit fee setting arrangements. Further details can be found in our 28th July Press release

Why your views matter

Summary of proposals for this consultation: 

  • Further action to support market stability
  • System leadership
  • Enhancing the functions of local audit and the Governance for responding to its  findings
  • Auditor training and Qualifications
  • Action to further consider the functioning of local audit for Smaller Bodies