ACCOUNTS AND AUDIT (Hansard, 22 October 1973)

§ Mr. Younger
I beg to move, That this House doth agree with the Lords in the said amendment.

§ Mr. Deputy Speaker (Miss Harvie Anderson)
I suggest that it will be for the convenience of the House if we take at the same time the following Lords Amendments:
No. 18, in Clause 97, page 52, line 16, leave out from "Audit" to end of line 18 and insert: , officers of the Commission, being professional accountants, and approved auditors appointed by the Commission for the purpose of conducting audits or, as the case may be, a particular audit under this part of this Act, and "approved auditor" means an auditor who is qualified under subsection (7) below". No. 19, in page 52, line 18, at end insert: (7) An auditor is qualified for the purposes of subsection (6) above if, and only if, he is a member, or a firm all the members of which are members, of one or more of the following bodies, that is so say—

The Institute of Chartered Accountants of Scotland.

The Institute of Chartered Accountants in England and Wales.

The Association of Certified Accountants.

The Institute of Municipal Treasurers and Accountants.

The Institute of Chartered Accountants in Ireland.
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Any other body of accountants established in the United Kingdom for the time being approved by the Secretary of State."

§ Mr. Younger
The general effect of these amendments is to impose requirements as to the qualifications of auditors appointed by the Commission for Local Authority Accounts to conduct local government audits.
The first amendment extends the general provision in Clause 96(4) that the accounts of every local authority are to be audited in accordance with subsequent provisions of the Bill by specifying that the audit is to be carried out by a professional accountant who is either an officer of the Commission or an approved auditor appointed by the Commission.
The second amendment alters the definition of auditor to refer to officers of the Commission, being professional accountants and to "approved auditors".
The third amendment applies the same definition of approved auditor as that in Section 164 of the Local Government Act 1972.
The effect of the amendments is to enable there to be assurance that the audit is carried out by those professionally qualified. This was suggested in the other place, and I ask the House to agree to these amendments.