The Association of Chartered Certified Accountants (ACCA) has expressed support for the UK government’s proposals aimed at reforming the audit system for local authorities.  

The proposed overhaul includes the establishment of a single, independent body to ensure the oversight of these audits, a move that ACCA believes signifies a positive shift towards centralisation. 

The Ministry of Housing, Communities and Local Government’s consultation seeks to address the shortcomings of the current local audit system by introducing a new Local Audit Office (LAO) and requiring the implementation of audit committees.  

These changes are based on eight foundational principles intended to strengthen the system’s statutory framework. 

ACCA notes that the proposals do not mention how the LAO will be adequately resourced. 

ACCA Policy and Insights director and National Audit Office and Financial Reporting Council former director, Mike Suffield said: “ACCA recommends the development and presentation of resourcing plans and an impact assessment as soon as practicable. Without this it is impossible to see how the LAO will work in practice.” 

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In addition, ACCA has raised concerns regarding the scarcity of skilled audit professionals within local government.  

ACCA UK Policy, Technical and Strategic Engagement head Glenn Collins said: “Capacity challenges in both accounts preparation and audit in local government are long-standing and deep seated. While the consultation document provides a useful starting point to discuss these matters, further detailed work is needed to develop a plan for a sustainable local government finance profession.” 

The association emphasises that high-quality and timely audits are crucial for maintaining transparency, fostering trust, and enabling local taxpayers to hold authorities accountable. 

This comes after ACCA published the results of its December 2024 exam session in January 2025.