Changes to Be Made in the Audit Commission
Michael O’Higgins, who is Audit Commission Chairman, has confirmed that many firms are willing to buy all or part of the Audit Commission, after the decision had been made by the board to scrap it.
Higgins has said in a statement that more than 4 private audit firms are very enthusiastic about buying off all or part of the Audit Commission.
Previously the government had announced that the Audit Commission will be scrapped. The Board of Directors of the Commission supported this view as well.
The decision to scrap the Commission comes after it was found that more than £50 million could be saved by this move.
Only the audit service that the Commission does is expected to value at between the range of £100 million and £150 million.
The Commission’s auditing practice is the 5th largest in the UK.
After the decision had been taken of scrapping the Commission, many options were being considered by its board, including that of privatization, staff buy out or mutualisation.
The board agreed that instead of completely scrapping its services and sacking all the staff, the decision to privatize it by selling all or parts of the business may be a fruitful idea.
The Audit Commission, though it operated within the purviews of the government, was an independent body and it involved itself in auditing of several public sector companies. It also did the auditing of some private sector companies.
The Commission reportedly does the audit of over £200 billion spent by 11,000 local public bodies. Its audit includes community safety, health, housing councils, fire and rescue services.
Labor has protested the move saying that it was “a determined attempt to ensure that taxpayers have no coherent information about the value for money for local services.”