LGA sets up public sector audit oversight company

The Local Government Association has formed a new company to oversee outsourced local audit contracts once the Audit Commission is abolished next March, which will be a transitional body tasked with appointing auditors, setting audit fees and managing audit contracts until the new arrangements are in place

The independent company, Public Sector Audit Appointments (PSAA), will oversee a number of key transitional responsibilities, including the appointment of auditors to local government and parts of the NHS.  It will manage contracts with private sector audit firms for the external audits of NHS bodies, the police and local authorities, until at least 2017. 

Under government plans following its decision to abolish the Audit Commission, once these deals expire after the 2016/17 financial year, county, district and London borough councils will be responsible for appointing their own auditors.

The company will be chaired by Steve Freer, former CIPFA chief executive, and four non-executive directors are currently being recruited. Relevant Audit Commission staff are expected to transfer to PSAA on 1 April 2015.

Jeremy Newman, chair of the Audit Commission said: ‘We are confident that Steve Freer understands the importance of protecting the independence of auditors and that he will continue the important aspects of the Audit Commission's work that are transferring to PSAA. We wish him well in his new role.’

 

 

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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