Abstract
This article considers the implications for local public audit of the abolition of the Audit Commission and its audit practice (District Audit). The audit regime of NHS foundation trusts, where the Audit Commission is not responsible for auditor appointments or their oversight, is investigated to provide insights for the future of local public audit.
Notes
* In the UK, local government was exclusively audited by the District Audit Service for 130 years, until the Local Government Act 1972. Local authorities were then able choose their own auditors—either District Audit or a private firm of auditors. However, the 1976 Layfield committee review of local government finance concluded that it was wrong for any public body to be able to choose its own auditors. Nevertheless, the situation remained until the Local Government Finance Act 1982 established the Audit Commission.
* Based on the auditor remuneration for 121 NHS trusts as shown in the NHS (England) Summarised Accounts 2009-2010 (HC 410).