We received written evidence from the University of Glasgow, which suggested two main points of failure in HM Treasury’s approach to the local audit crisis. Firstly, that the emerging problems in local audit were not identified or considered in terms of risk. It explained that this meant that a gap in oversight was allowed to grow when the Department for Levelling Up, Housing & Communities did not step into the oversight role previously occupied by the now defunct Audit Commission. Secondly, ...

We received written evidence from the University of Glasgow, which suggested two main points of failure in HM Treasury’s approach to the local audit crisis. Firstly, that the emerging problems in local audit were not identified or considered in terms of risk. It explained that this meant that a gap in oversight was allowed to grow when the Department for Levelling Up, Housing & Communities did not step into the oversight role previously occupied by the now defunct Audit Commission. Secondly, it suggested that HM Treasury had failed to appreciate the prime importance of reductions in local 23 WGA0002 Written evidence from ICAEW: The Institute Type: conclusion | Number: 18 | Response status: not_addressed Government response: 3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 HM Treasury wrote to the Committee at the beginning of March 2024, providing an update on how the department is engaging at a senior level with the other relevant stakeho