Over the last twenty seven years, the Audit Commission has played a very significant role in scrutinising the work of local public services – local government, health, housing, community safety and fire brigades – and the value they deliver to the tax payer. It has had a number of very high profile achievements which the current Chairman, Michael O’Higgins has highlighted in his response to the coalition government’s announcement that the Commission is to be abolished. As importantly, on a day-to-day basis, it has helped ensure taxpayers can see where they are and aren’t getting value for money from those organisations that are accountable to them.
In determining what should replace the Audit Commission, the coalition government has accepted the principle of having independent monitoring of public bodies undertaken by a qualified auditor. It has recognised that the skills and expertise provided by auditors do offer value to taxpayers and are an important component in the overall system of oversight of public bodies that spend public money.
The new regime will see the National Audit Office take on a greater role in defining the framework for local public service auditing with the actual work undertaken by the private sector. Such a strategy has the potential to create greater competition and choice within the audit market and could be a real opportunity for accountancy firms outside the big 4.
The new structure needs to build on what was best about the Audit Commission it succeeds. But it should also be open to innovation from the private sector as it takes on such an important responsibility.