§ Mrs. LawrenceTo ask the Chancellor of the Exchequer what plans he has to change audit and accountability arrangements for central Government. [112404]
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§ Mr. Andrew SmithI am proposing to undertake a study to recommend suitable audit and accountability arrangements for central government in the 21st century.
The study will cover the issues raised by the Committee of Public Accounts concerning the role and powers of the Comptroller and Auditor General in their recent report on the Government Resources and Accounts Bill (9th Report 1999–2000, HC159). It will also cover other relevant issues, such as the role of audit in modernising government, including performance validation, the audit of joined-up activities and attitudes to risk-taking. It will look at the implications of devolution, the wider European context with particular reference to European directives affecting audit arrangements, possible models from other countries, and the relationship with other audit and regulatory bodies. All this must have regard to the importance of Parliamentary scrutiny and accountability, the costs and burdens of regulation and the mechanics of change.
Given the importance of Parliament's rights in these matters, its interests in scrutiny, accountability and control of expenditure will be reflected in the way the review is undertaken, including the steering group for the study. The steering group will direct a project board responsible for the delivery of the study. The project board will have an independent Chair.