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

This strategy commits to a series of measures to fix the broken local audit system, including:

• a local audit vision with 8 core principles
• the establishment of a statutory and independent Local Audit Office (LAO), with 5 strategic responsibilities - coordinating the system, contract management, ownership of the Code of Audit Practice, quality oversight and reporting
• mandating audit committees

The government is also consulting on a number of specific proposals as part of this strategy, including:

• potential additional functions of the new LAO
• simplifying financial reporting requirements to ensure they are proportionate
• improvements to enhance capacity and capability in the local audit sector, such as the introduction of public provision
• strengthening the relationship between local bodies and their auditor
• reforming the audit regime

Local government is a devolved matter. This strategy applies to England only.

Email questions or technical problems to: localaudit@communities.gov.uk