Major Local Audits Reports
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We annually publish the inspection findings of Audit Quality Reviews of major local audits in England, which includes large health and local government bodies. The audit of a relevant authority becomes a major local audit if it:
- Has total income or expenditure of at least £500 million; or
- Administers a local government pension scheme with at least 20,000 members or assets over £1,000 million.
Latest publication: 25th August 2026
The FRC inspected a sample of six NHS MLAs this year. These audits were predominantly for the year ended 31 March 2025. All inspections, of financial statements audits and work on Value for Money arrangements, were assessed as good or limited improvements required. Good practice was also identified.
We will not issue a public report on our MLA inspection work this year because it would not be proportionate to our findings or the scope of our monitoring activities.
The Local Audit Office (LAO) is expected to be established in Autumn 2026. The LAO will assume responsibility for monitoring and inspection of all local audits moving forward.
For the financial year ended 31 March 2026, we expect to:
- Perform four inspections of NHS MLAs. This is a reduction from six in the previous inspection cycle. The reduction in inspections is proportionate to a reduction in the number of NHS MLAs, following a change to the MLA definition. These four inspections will not be complete before the establishment of the LAO. The FRC is working with MHCLG on transitional arrangements that will allow the FRC to complete these inspections. If there are any changes to the FRC’s expected quality monitoring in this area, we will inform the impacted audit firms.
- Perform no routine inspections of local government MLAs. The backstop date (or deadline) for these audits is 31 January 2027. By then, the LAO is expected to be established and responsible for any monitoring and inspection.
Previous publications
| Name | Major Local Audits: Audit Quality Inspection (November 2024) |
|---|---|
| Publication date | 19 November 2024 |
| Type | Report |
| Format | PDF, 1.4 MB. View HTML version |
| Name | Major Local Audits: Audit Quality Inspection (December 2023) |
| Publication date | 8 December 2023 |
| Type | Report |
| Format | PDF, 1.1 MB. View HTML version |
| Name | Major Local Audits: Audit Quality Inspection (October 2022) |
| Publication date | 28 October 2022 |
| Type | Report |
| Format | PDF, 2.5 MB. View HTML version |
| Name | Major Local Audits: Audit Quality Inspection (October 2021) |
| Publication date | 29 October 2021 |
| Type | Report |
| Format | PDF, 3.3 MB. View HTML version |
| Name | Major Local Audits: Audit Quality Inspection (October 2020) |
| Publication date | 30 October 2020 |
| Type | Report |
| Format | PDF, 1.2 MB. View HTML version |