77.This section sets out the general duties with which a local auditor must comply when auditing the accounts of a relevant authority – except audits of health service bodies: the general duties of local auditors for health service bodies are in section 21. It requires the auditor to be satisfied that the relevant authority’s accounts (the statement of accounts and accounting records) comply with the relevant enactments; that proper practices have been observed in the compilation of the statement of accounts and that the statement of accounts presents a true and fair view; and that the relevant authority has made proper arrangements for securing economy, efficiency and effectiveness (value for money) in the use of its resources.
78.Subsection (2) requires the auditor to issue an opinion on the statement of accounts and a certificate to confirm that the audit has been undertaken in accordance with this Act. These would usually be issued when the audit is complete, and the opinion would be included within the final statement of accounts. However, subsection (4) allows the auditor to issue the opinion on the accounts and close the accounts before issuing the certificate if the auditor is still considering objections, the resolution of which would not affect the accuracy of the statement of accounts. This means that the closure of the statement of accounts does not need to be delayed if the auditor is considering objections which would not impact on the statement of accounts thus increasing transparency locally.
79.If relevant authorities are required to keep a separate Pension Fund under the Local Government Pension Scheme, a local auditor is required to provide a separate opinion on that part of the statement of accounts.
80.Subsections (5) and (6) require local auditors of all relevant authorities (including health sector bodies) to comply with the relevant code(s) of audit practice and have regard to guidance which has been issued by the Comptroller and Auditor General in support of the code.