Commenting on the recommendations of the Redmond Review of local authority financial reporting and audit, published earlier today, Janet Dawson, EY’s UK Government and Public Services Assurance Leader, says:
“The Redmond Review is a significant opportunity to shape the future of local government financial reporting and auditing. A balanced, holistic, and sustainable reform package will help ensure audit continues to meet the evolving needs of local authorities, the public, and the public interest.
“We welcome the review and the proposals announced today, notably the establishment of a new overarching body in the form of the Office for Local Audit Regulation, the creation of a Liaison Committee, and the revised timetable for public sector reporting. The proposals contained in the report will support ongoing investment in sustainable, high quality audits and will bring clarity to the existing framework for local authority audit.
“Local authority audit reform must be accompanied by a system-wide strengthening of public sector governance and accountability, and improvements to the quality of reporting. Each part of the local authority finance ecosystem is inter-linked and we need all stakeholders to work together for the reforms be truly effective over the long-term. We’re pleased that this is recognised by the review.
“It is also vital that local authority audit reform continues to progress in conjunction with the various ongoing reviews into audit more broadly, in order to avoid the emergence of a two-tier approach to accounting and audit standards for local authorities and corporates.”