The Financial Reporting Council (FRC) has released preliminary findings from its ongoing study into the NHS audit market, indicating potential issues affecting auditor choice and market capacity.
The findings also highlighted potential issues that could affect the sector’s future resilience.
Initiated in July 2024, the study was aimed at understanding the market dynamics and the challenges NHS providers and Integrated Care Boards face regarding audit services.
Initial feedback suggests that while the NHS audit market is operational, concerns exist around auditor choice for NHS bodies, particularly in some regions of England.
According to a survey conducted by the FRC, 87% of NHS bodies are worried about their options for future audits.
Identified challenges include capacity constraints due to scheduling pressures, conflicts of interest, and geographical limitations.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAudit firms currently serving the NHS have indicated they have the capacity to meet the needs of their clients but encounter obstacles when trying to expand.
Factors such as audit schedule demands, conflicts of interest, and the difficulty of hiring qualified staff are cited as capacity constraints.
Additionally, finance teams within some NHS bodies have expressed that their ability to produce quality financial information, crucial for high-quality audits, may be limited.
Concerns have also been raised about the procurement frameworks for external audits within the NHS.
Audit firms have reported issues with the timing and complexity of the tender processes and a lack of early engagement with NHS bodies.
Stakeholders also voiced differing opinions on NHS audits’ value and purpose. While some NHS bodies focus on meeting audit deadlines and financial targets, others question the need of value for money reporting included in their audits.
The FRC said it is seeking further input on these initial findings and plans to hold additional stakeholder meetings in the coming months.
The final report, expected in Spring 2025, will include comprehensive conclusions and any recommendations for action.
