HFMA response / HFMA’s response to NAO’s Code of Audit Practice Consultation

HFMA has responded to stage 2 of the NAO consultation on the Code of Audit Practice (Code) which covers the draft text. The new Code will come into force by April 2020 applying to audits from 2020/21.

The main changes apply to the auditor’s work on economy, efficiency and effectiveness of corporate arrangements (value-for-money arrangements) and reporting the results of the auditors’ work. The HFMA welcomes the proposed new audit approach to assessing and reporting on value for money (VFM) and maximising the impact of local audit work. However, we do have concerns about the potential impact of any extra work on audit fees, which would be an additional financial pressure on NHS resources.