About the Code
The Code of Audit Practice sets out what local auditors of relevant local public bodies are required to do to fulfil their statutory responsibilities under the Local Audit and Accountability Act 2014. ‘Relevant authorities’ are set out in Schedule 2 of the Act and include local councils, fire authorities, police and NHS bodies. Schedule 6 of the Act extends this requirement to include NHS Foundation Trusts.
Local auditors must comply with the Code of Audit Practice. The Code must be reviewed at least every five years, so the Code that applies will depend on the financial year being audited.
The Local Audit and Accountability Act 2014 made the Comptroller and Auditor General responsible for the preparation, publication and maintenance of the Code of Audit Practice. The Code sets out what local auditors are required to do to fulfill their statutory responsibilities under the Act.
Download the Code of Audit Practice
The 2024 Code of Audit Practice came into force on 14 November 2024 and applies immediately.
Previous NAO Codes of Audit Practice are available below. These continue to apply to some audits in certain circumstances, which are set out in the 2024 Code.
The NAO’s Local Audit Code and Guidance team have day to day responsibility for this area of our work. For any queries about the applicability of previous Codes, please contact either the local external auditor or the LACG team.
Guidance and information for auditors
The Local Audit and Accountability Act 2014 provides the Comptroller and Auditor General with the power to issue guidance to auditors which may explain or supplement the provisions of the Code of Audit Practice. The Act requires auditors to have regard to such guidance.
To support auditors in their work and facilitate consistency of approach between auditors of the same types of entity, we maintain a series of Auditor Guidance Notes (AGNs). See the current auditor guidance notes.
The audit framework for local public bodies
The Local Audit and Accountability Act 2014 abolished the Audit Commission. The new framework for local public audit now involves several different entities each of which has a particular role – for example, the C&AG has a responsibility to prepare the Code of Audit Practice and a power to issue guidance to auditors.
Previously, the Audit Commission appointed local auditors and maintained the Code of Audit Practice and associated guidance.
Further information about roles and responsibilities for the audit of local bodies please refer to the documents below:
Roles and responsibilities of the NAO and local auditors (pdf – 173KB)
Local auditor appointment (pdf – 272KB)
The Comptroller and Auditor General’s remit
Statutory duties and powers in respect of local public audit
Schedule 6 of the Local Audit and Accountability Act 2014 makes the Comptroller and Auditor General (C&AG) responsible for the preparation, publication and maintenance of the Code of Audit Practice. The Code sets out what local auditors are required to do to fulfil their statutory responsibilities under the Act 2014. Local auditors must comply with the Code of Audit Practice.
Schedule 6 of the Act puts a range of requirements in place in respect of the C&AG’s responsibility for the Code. These include duties to consult publicly and obtain Parliament’s approval for the Code prior to publication, to keep the Code under review and to use reasonable endeavours to prepare and publish a new code approximately every five years.
Schedule 6 of the Act provides the C&AG with the power to issue guidance to auditors on the exercise of their duties under the Act. In particular, such guidance may explain or supplement the provisions of the Code of Audit Practice. Local auditors are required to have regard to such guidance.
The C&AG has published Local authority accounts – a guide to your rights.
Whistleblowing
The C&AG is a prescribed person to whom whistleblowers can make protected disclosures under the Public Interest Disclosure Act 2008. With the closure of the Audit Commission, the Government widened the C&AG’s remit as a prescribed person. However, although the C&AG can now receive disclosures relating to the proper conduct of public business, value for money, fraud and corruption in relation to the provision of all public services, this does not give them any additional investigatory powers.
Matters relating to issues at local authorities or local NHS bodies are therefore best directed to the local auditor who is also a prescribed person under the Act.
To find out more information or to make a disclosure please visit our whistleblowing webpage.
Related content
Guidance and information for auditors