In addition to the Code of Audit Practice requirements set by the NAO, will the contracts include the audit of wholly owned companies and group accounts?

Local authority group accounts are part of the accounts produced under the CIPFA SORP and are subject to audit in line with the NAO Code of Audit Practice. They will continue to be part of the statutory audit for which PSAA makes an auditor appointment for opted-in bodies.

Local authority companies are not listed in the Local Audit and Accountability Act as bodies subject to audit under that act. Company audits are subject to the provisions of the Companies Act 2006 and are not covered by the Local Audit (Appointing Person) Regulations 2015 or the scope of PSAA’s specification as the appointing person.

Local authority companies must appoint an auditor themselves in accordance with Companies Act legislation. They are able to appoint the same audit firm as PSAA appoints to undertake the principal body audit, should they so wish, for example where this could support an efficient audit process.