New backstop dates for local government audits will clear the backlog in the next few years, as part of government efforts to solve the problems plaguing the system of assurance in the sector.
A lack of auditor capacity and complex accounting requirements worsened the local audit crisis and meant the Financial Reporting Council could only inspect four financial statements in 2022-23.
Any hope of sustainably clearing the huge backlog in local government audit will fail unless the underlying issue of audit resources is fixed, a committee of MPs has said.
MPs heard that local audit needs a fresh start to clear the backlog and return to timely account sign-off, but were warned that such a move would be risky.
The huge backlog of unaudited local government accounts has ramifications across government, including for entire departments and the NHS, the head of the NAO has warned.
