Local Public Audit

• Regulators:
  • Institute of Chartered Accountants in England and Wales
  • Financial Reporting Council
• Nations:
  • England
• Sectors:
  • Finance

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Regulatory or professional bodies

Primary regulator

• Regulatory authority: Financial Reporting Council
• Address:

  125 London Wall; London; EC2Y 5AS

• Email address: enquiries@frc.org.uk
• Website: https://www.frc.org.uk
• Phone number: +44 (0)20 7492 2300

Additional regulator

• Regulatory authority: Institute of Chartered Accountants in England and Wales
• Address:

  Chartered Accountants’ Hall; Moorgate Place; London EC2R 6EA

• Email address: generalenquiries@icaew.com
• Website: https://www.icaew.co.uk
• Phone number: +44 (0)2079208100

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Regulation

Regulation summary

Local bodies appoint audit firms, which must be registered with a Recognised Supervisory Body (RSB) that has been recognised by the Financial Reporting Council (FRC) for local audit. These audit firms are subject to regulation by the RSB.

ICAEW is currently the only RSB recognised to register local audit firms and Key Audit Partners (KAPs).

You must be registered as a KAP to sign off the audits of local authorities, NHS bodies and other bodies within the scope of the Local Audit and Accountability Act 2014.

Only firms with KAPs can register with ICAEW to perform local audits. It does not apply to the audits of smaller authorities or NHS Foundation Trusts.

You can apply to the ICAEW to become a Key Audit Partner here: https://www.icaew.com/-/media/corporate/files/regulations/local-public-audit-in-england/key-audit-partner-application.ashx

Regulation type

Licence

Reserved activities

Local audit

Protected titles

Registered auditor, Key Audit Partner, chartered accountant, chartered certified accountant

• More about regulated activities and titles: https://www.frc.org.uk/auditors/professional-oversight/local-audit

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Qualifications and experience

New professionals

• Routes to qualification:

  To become eligible to register as a statutory auditor, you must be a member of and satisfy the registration requirements of a Recognised Supervisory Body which include holding an appropriate audit qualification.

  In relation to the audit of relevant authorities, you must hold an “appropriate qualification”. You hold an appropriate qualification if you:

  • Hold a qualification awarded by a recognised qualifying body under section 1219(1)a of the Act; (Companies Act AQ); or

  • Hold a qualification awarded by a recognised qualifying body under section 1219 of the 2006 Act; or

  • Were a member of ICAEW, ICAS, CAI, ACCA or the Chartered Institute of Public Finance and Accountancy (CIPFA) before 1 November 2015 or had started a course of study leading to a professional qualification in accountancy with one of those bodies before 1 November 2015 and became a member before 1 November 2021.

• More about qualification: https://www.frc.org.uk/auditors/professional-oversight/oversight-of-audit

Professionals from other UK nations

• Routes to recognition within the UK:

  All statutory auditors within the UK are subject to the same regulatory requirements.

Professionals from outside the UK

• Recognition for professionals outside the UK: Some - qualifications from some countries may be recognised, but professionals from other countries will have to re-qualify
• Summary of routes:

  For further information on routes to recognition you should contact the relevant Recognised Supervisory Body.

• More about recognition for professionals outside the UK: https://www.icaew.com/-/media/corporate/files/regulations/local-public-audit-in-england/application-to-become-a-local-auditor.ashx?la=en

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Registration

• Registration requirements:

  Information on how to register as a local auditor and Key Audit Partner can be found on the website of the relevant Recognised Supervisory Body.

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Legislation

• Title of relevant act or charter:

  Local Audit and Accountability Act 2014

• Website link to legislation: https://www.legislation.gov.uk/ukpga/2014/2/contents/enacted
• Title of relevant act or charter:

  FRC Statutory Guidance under the Local Audit and Accountability Act 2014

• Website link to legislation: https://www.frc.org.uk/getattachment/c4bc016c-c758-4d9f-95bc-ff98f7f11907/FRC-Revised-Guidance_-June-2022.pdf

Licence Finder

You may need licences and permits to carry out certain activities in the UK. These are called authorisations. Use the licence finder to find what you need.