ADA responds to local audit reform proposals

Local audit reform: a strategy for overhauling the local audit system in England

ADA welcomes the publication of the MHCLG strategy for the overhauling the local audit system in England.

ADA welcomes the proposal for a temporary increase to the upper threshold for Smaller Authorities to £10.2 million, but recommends it is raised to £15 million. Consideration should be given to backdating the threshold change to remove from Full Audit those Smaller Authorities that have been impacted as a consequence of crossing the upper threshold, so that they can cease any nugatory transitional work preparing for Full Audit. SAAA supports the uplift of the lower threshold broadly in line with inflation allowing the smallest of authorities to remain exempt from Limited Assurance review.

ADA would welcome the application of the transparency codes to Smaller Authorities being reviewed to ensure that all Smaller Authorities are covered by an appropriate code.