Section 90 Local audit providers: registration and public provisionI1

In the Local Audit and Accountability Act 2014, after Part 2 insert—

“Part 2A

Providers of audit services

Local audit register

6A

(1)

The Local Audit Office must secure that there is at least one public register of individuals and firms who are (by virtue of their registration) entitled to carry out audits in accordance with this Act.

(2)

It may do so by—

(a)

keeping a register itself, or

(b)

designating another body as an external registration body (see section 6B).

(3)

An external registration body must keep a register meeting the description in subsection (1).

(4)

In this Act—

• “local audit register” means a register kept in accordance with this section;

• “registered local audit provider” means an individual or firm that is registered in a local audit register.

(5)

Fees may be charged in respect of—

(a)

applications for registration in a local audit register;

(b)

entry in such a register;

(c)

remaining in such a register.

External registration bodies

6B

(1)

The Local Audit Office may designate a body as an external registration body only if—

(a)

the body consents, and

(b)

the Office is satisfied that—

(i)

the body is able and willing to co-operate with the Office in pursuit of the objective set out in section 1B,

(ii)

the body is able and willing to promote and maintain high standards of integrity in the conduct of audits under this Act, and

(iii)

the rules and arrangements of the body that will have effect in relation to registered local audit providers and lead partners (see in particular Schedule 1C) will be fair, reasonable, and fit for purpose.

(2)

The Office—

(a)

may revoke the designation of an external registration body, and

(b)

must do so if no longer satisfied of the matters set out in subsection (1)(b), unless it considers that the body is likely to satisfy it of those matters again within a reasonable period.

(3)

The making or revocation of a designation is to be done by written notice to the body in question; and the Office must publish such a notice.

(4)

The making or revocation is to have effect from the time specified in the notice.

(5)

The Local Audit Office and an external registration body, or a body that anticipates becoming an external registration body, may enter into an agreement about—

(a)

how the body is to carry out its functions as an external registration body;

(b)

fees, costs or other sums that are to be paid by the body to the Office;

(c)

circumstances in which the Office will or will not exercise its power under subsection (2)(a);

(d)

procedures to be followed in order for the Office to reach a decision whether to exercise that power or whether its duty under subsection (2)(b) is engaged.

(6)

Fees charged by an external registration body under section 6A(5) may be calculated by reference to any costs borne by the body as a result of this Act.

(7)

Schedule 1B makes further provision about external registration bodies, including provision for the enforcement of their duties.

Eligibility and regulation of registered providers

6C

(1)

The body that keeps a local audit register must comply with the requirements of Schedule 1C (which sets out requirements in connection with the register, including requirements about eligibility for registration and the regulation of registered providers).

(2)

The requirements of Schedule 1C do not limit the ability of the body to have in place rules or arrangements going beyond those requirements (whether relating to the same or different subject matter).

(3)

An agreement under section 6B(5)(a) may, accordingly, include terms supplementing those requirements or imposing additional requirements.

Professional qualifications

6D

In Schedule 1D—

(a)

Part 1 sets out certain requirements as to professional qualification referred to in Schedule 1C, and

(b)

Part 2 makes provision about bodies offering qualifications referred to in Part 1.

Powers of Local Audit Office to facilitate provision by firms

6E

The Local Audit Office may—

(a)

form a firm,

(b)

acquire interests in a firm, or

(c)

give assistance (financial or otherwise) to a firm,

with a view to the firm becoming, or remaining, a registered local audit provider that carries out audits under this Act.

Scrutiny of Local Audit Office as audit provider

6F

(1)

This section applies if the Local Audit Office decides that it is to carry out audits under this Act.

(2)

The Office must put in place arrangements under which its audit practice will be monitored, inspected and reported on by persons acting independently of the Office.

(3)

The Office must send to the Secretary of State reports made to it under the arrangements.”

Schedule 35 inserts the Schedule 1B, Schedule 1C and Schedule 1D referred to above.