Diploma in Local Audit

The constantly changing nature of public services requires auditors to regularly update their knowledge and skills to effectively carry out their roles and responsibilities. The ways in which public bodies now procure services and manage contracts; the development of partnership working and sharing services, and the embedding of risk management in public sector governance require the modern auditor to develop their skills to effectively audit these new arrangements. 

The aim of CIPFA's Diploma in Local Audit is to provide delegates with a broad understanding of the Local Government landscape, and specifically Local Government financial reporting and management. It will provide delegates with the necessary knowledge and skills to meet the auditing and financial reporting needs of the Local Audit and Accountability Act 2014 and the local authority financial reporting framework. 

It has been designed as a ‘top-up’ CPD programme, to develop the knowledge and capability of qualified auditors and therefore build market capacity for local audit.  

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To express interest in this course or if you have any queries please contact hello@cipfa.org

Who’s it for? 

The course has been developed for qualified and experienced auditors who wish to enhance their knowledge and understanding of Local Government financial reporting and management. It will therefore be of interest to auditors new to Local Audit – to enhance their knowledge of the sector, or those auditors more experienced in Local Audit who wish to engage in continuing professional development. 

For experienced auditors planning to apply for Key Audit Partner status, this course has been approved as appropriate CPD for those applying via route 10.i.c (for Responsible Individuals). Certificates awarded for the purpose of KAP applications are valid for 3 years.

What does it cover? 

The course comprises 8 self-study e-learning modules, and a short online exam. It has been designed for maximum flexibility in relation to where and when the study takes place.  

Module one: The Local Audit Context

• The range of responsibilities of a local auditor, and the statutory framework for the auditor’s duties and responsibilities 
• The requirements of the Code of Audit Practice for the planning and conduct of a local audit and for reporting on its outcome 
• Considerations when applying auditing standards to a local audit 
• The rights of the public to participate in the audit process (Local Govt only) 
• The local auditor’s special powers to act, including public interest reports, statutory recommendations and applications to the courts 
• The auditor’s specific duties in relation to value for money, and (NHS only) in relation to regularity 

Module two: Legislative and Regulatory Frameworks for Local Government 

• The principal elements of the legislative framework for financial accounting and reporting in Local Government in England 
• The foundations of financial reporting and what constitutes ‘proper practices’ in the preparation of the statement of accounts 
• The publication process for the unaudited and audited statement of accounts 

Module three: Good Governance in Local Government 

• The development of governance in the public sector context 
• Application in local authorities of the governance principles outlined in the ‘International Framework – Good Governance in the Public Sector’ publication 
• Roles and responsibilities within local government governance models 
• The process for ensuring accountability in local authorities 
• The embedding of Standards in Public Life within governance structures in local authorities 

Module four: Funding and Financing Local Government Services

• Sources of revenue: council tax, non-domestic rates, Government grants and income from sales, fees and charges 
• The role of reserves 

Module five: Local Government Financial Management and Budget Setting

• The statutory role of the CFO and CIPFA statement on the role of the CFO and Role of the CFO in local government 
• The statutory prescribed Financial year 
• S.114 Notices and statutory office and the role of the auditor
• CIPFA FM Code 
• Different management of capital and revenue expenditure 
• Asset management in local government 

Module six: Local Government Financial Reporting 

• Objectives of financial accounting and reporting: the purposes of financial accounting and reporting, the essential characteristics of financial information, the objectives of financial statements, the users of financial statements, the purposes of audit 
• Regulation of local authority financial reporting: the major components of the statutory and regulatory framework for financial accounting and reporting in local government, the scope and authority of the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom, the relationship between financial reporting standards and the CIPFA Code 

Module seven: Capital Finance and Treasury Management 

• Understanding capital finance: its importance to local authorities and the risks the activity presents, what qualifies as capital expenditure, how the concept of credit arrangements brings innovative financing arrangements within the scope of capital finance, how authorities match their capital expenditure to available resources, what capital receipts are and how they can be used, how capital financing impacts on revenue balances through the mechanism of Minimum Revenue Provision (MRP), how the Prudential Code supports the statutory arrangements for capital finance 
• Understanding treasury management: the functions of treasury and their purpose, the regulatory framework, the governance framework, the contents of treasury reports and their link to capital strategy, the use and management of advisors and other external service providers, the role of prudential indicators and key performance indicators, key treasury risks and the economic environment 

Module eight: Value for Money in Local Government Audit

• Understanding concepts of value for money (VFM), its importance to the public sector and how VFM is assessed by local authorities 
• The role of audit in VFM and how VFM audits are carried out, and methods to assess VFM 

Assessment

To gain the CIPFA Diploma in Local Audit, delegates will be required to pass a multiple-choice exam in which they demonstrate their acquisition of knowledge of Local Government financial reporting and management. 

The exam comprises 60 questions to be answered in 90 minutes. Delegates will have 3 attempts at the exam and, to be successful, must achieve a mark of at least 60%. 

Access Duration 

Delegates will have 6 months to complete the course.  

CPD Hours  

The course carries 40 CPD hours 

Price 

£1200 + VAT per person. 

For queries or to express an interest contact hello@cipfa.org