HC Deb 18 July 1988 vol 137 cc782-3
23. Mr. Barry Field

To ask the Chairman of the Public Accounts Commission what is the total sum paid to outside auditors by the National Audit Office for each of the last five years; and how many private sector audit practices were in receipt of such payments.

Sir Peter Hordern (The Chairman of the Public Accounts Commission)

The main National Audit Office contracts for audit work placed with firms engaged in private sector audit practice amounted to £53,000—including VAT—in 1984–85 involving two firms. The figure for 1988–89 is estimated at £139,000. The number of firms involved this year is three. I have arranged for full details for the five years covered by the question to appear in the Official Report.

Mr. Field

Can my hon. Friend really be satisfied with those figures, given the substantial size of the National Audit Office? Should we not look for a much greater proportion of the audit work being put out to the private sector?

Sir Peter Hordern

It is open to the National Audit Office and the Comptroller and Auditor General, who has complete authority in these matters, to decide just how much work should be put out to the private sector. The Comptroller and Auditor General recognises the importance of the work being carried out in the private sector to help his auditors gain experience of the private sector market, as is happening increasingly.

Following are the figures:

The main National Audit Office contracts with firms engaged in private sector audit practice have been as follows:

Year Total Contract Value (including VAT) £ Number of firms
1984–85 53,000 2
1985–86 81,000 4
1986–87 88,00 2
1987–88 97,000 2
1988–891 139,000 3
1 Estimate.

These contracts cover the audit of NAO's own accounts and audit work on other organisations' accounts on behalf of the Comptroller and Auditor General.