The Local Audit and Accountability Act 2014 (the Act) came into force on 31 January 2014. The Act abolished the Audit Commission and established new arrangements for the audit and accountability of local public bodies in England. Under the new framework, local government and health bodies are able to procure and appoint their own auditors.
The FRC granted ICAEW a recognition order as a recognised supervisory body (RSB) in November 2015. Under this framework, ICAEW is responsible for the licensing, registering and monitoring of auditors who carry out audits of local public bodies.
The Local Auditor Register contains a full list of registered local auditors and key audit partners.
Working in the regulated area of local audit
This work is reserved by law to a registered local auditor. Generally it is audit work in relation to a local body (or relevant authority as defined by Section 2 of the Act). Firms should also note that this doesn’t, however, reflect the inclusion of NHS trusts and special trustees by virtue of Schedule 13 – and then the disapplication of this by SI 2015/975.
A registered local auditor is a firm that undertakes regulated local audit work. It is registered with an RSB such as ICAEW.
When does a firm need to become a registered auditor?
Under Schedule 5, section 4 of the Act, a firm can only accept appointment as a local auditor if it’s a registered local auditor under the rules of a RSB such as ICAEW. The new framework came into operation on 1 April 2015.
How can my firm become a registered local auditor?
If your firm wants to become a registered local auditor, it will need to:
- fill in the local auditor application form;
- satisfy ICAEW's Audit Registration Committee that it meets the criteria and is a fit and proper firm to carry out audit work;
- pay an annual audit registration fee;
- comply with the Local Audit Regulations and Guidance;
- comply with ICAEW’s Professional Indemnity Insurance Regulations;
- be monitored by ICAEW.
How can I become a key audit partner?
Individuals, who sign local audit reports within a registered local audit firm, are called key audit partners (KAPs). The detailed eligibility requirements are set by the Act and the FRC’s Guidance to Recognised Supervisory Bodies on the Approval of Key Audit Partners for local audit. They include a requirement to:
- hold an appropriate qualification;
- meet relevant eligibility criteria; and
- be nominated by the firm as a key audit partner.
In discussion and agreement with the FRC, ICAEW has also developed specific guidance for the eligibility, defining what constitutes ‘local audit’ and ‘similar audit work’
Please fill in the key audit partner application form.
If you need to provide evidence of your practical training, use our supplementary training record form.
If you move to a new firm, you must reapply for key auditor partner status.
How can I become a local audit affiliate?
To become an audit affiliate, please complete the application for local audit affiliate status.
The application process and fees
Regulatory applications and fees
Access more information about the application process, including the 8-12 week’s lead time, the assessment process and fees.
Changes in firm structure – please tell us within 10 business days
It’s important to maintain your firm record accurately. An inaccurate or out of date firm record may constitute a misdescription of your firm. It could also lead to regulatory or disciplinary action.
These frequently asked questions may help with any further questions you have about the application process.