Local Audit and Accountability Act 2014

21 General duties of auditors of accounts of health service bodies

(1) In auditing the accounts of a clinical commissioning group, a local auditor must, by examination of the accounts and otherwise, be satisfied—

(a) that the accounts present a true and fair view, and comply with the requirements of the enactments that apply to them,

(b) that proper practices have been observed in the preparation of the accounts,

(c) that the group has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources,

(d) that money provided by Parliament has been expended for the purposes intended by Parliament,

(e) that resources authorised by Parliament to be used have been used for the purposes in relation to which the use was authorised, and

(f) that the financial transactions of the group are in accordance with any authority which is relevant to the transactions.

(2) In subsection (1)(e) use of resources means their expenditure, consumption or reduction in value.

(3) In auditing the accounts of special trustees for a hospital, a local auditor must, by examination of the accounts and otherwise, be satisfied—

(a) that the accounts present a true and fair view, and comply with the requirements of the enactments that apply to them,

(b) that proper practices have been observed in the preparation of the accounts, and

(c) that the special trustees have made proper arrangements for securing economy, efficiency and effectiveness in their use of resources.

(4) When a local auditor has completed an audit of the accounts of a health service body, the auditor must—

(a) enter on the accounts a certificate that the auditor has completed the audit in accordance with this Act, and

(b) make a report in accordance with subsection (5).

(5) A report under subsection (4)(b)—

(a) must contain the auditor’s opinion on the accounts, including on the matters in subsection (1) or, as the case may be, subsection (3), but

(b) must not contain the auditor’s opinion on the matter in subsection (1)(c) or (3)(c) if the auditor is satisfied as to that matter.