The Financial Reporting Council (FRC) is consulting on proposals to extend access to key audit partners working in local audit, changing the rules of entry, to increase competition
The consultation is looking at revising FRC’s guidance on recognised supervisory bodies (RSBs) relating to the recognition of key audit partners for local audit which were suggested in the November 2020 Redmond report.
The Redmond Review highlighted that the current eligibility criteria for appointment as a local auditor makes it ‘difficult for new entrants to enter the local authority market’ because ‘audit firms not currently in the market are unable to gain the relative knowledge and expertise’.
The FRC plans to revise the rules so that ‘audit firms with the requisite capacity, skills, and experience are not excluded from bidding for local audit work’ and that ‘all auditors engaged in local audit be provided with the requisite skills and training to audit a local authority irrespective of seniority’.
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