FRC report identifies challenges in NHS audit market, calls for reform

From Yahoo Finance: 2025-05-15 10:27:00

The Financial Reporting Council (FRC) has released a report on the NHS audit market, highlighting challenges faced by NHS bodies and the need for reform in the local audit system. The study, initiated in July 2024, identified issues such as limited capacity expansion among audit firms, problematic tender processes, and misalignment of priorities between NHS bodies and audit firms.

Audit firms serving NHS clients expressed capacity to continue but face barriers in scaling services. They also noted challenges with audit tender processes and lack of early engagement with NHS bodies. Pre-bidding engagement is crucial for understanding needs and expectations. A misalignment of priorities between NHS bodies and audit firms may impact the quality of accounts and audits.

The FRC’s report suggested short-term and medium to long-term remedies to address identified issues in the NHS audit market. Recommendations aim to bolster market resilience and support the government’s broader local audit system reform programme. FRC executive supervision director Sarah Rapson emphasized the importance of addressing these issues to maintain market resilience and contribute to the reform programme.



Read more at Yahoo Finance: FRC report highlights key issues in NHS audit market