Framework agreement for Financial Audit and Assurance Services

The National Audit Office (NAO) scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG) is an Officer of the House of Commons and leads the NAO; he certifies the accounts of all UK government departments and many other public sector bodies.

The NAO's recommendations and reports on good practice help government to improve public services, and its work led to audited savings of £1.15 billion in 2014. The NAO is seeking to establish a framework for appointing firms able to deliver, or contribute to the delivery or development of, financial audit and other assurance engagements or related work for and on behalf of the C&AG.

This work is required throughout the United Kingdom. The NAO currently has three major client groups ('Lots') from which it contracts-out financial audit work to firms providing financial audit and assurance services.

The relevant contracts are due to expire, and the NAO intends to replace these groupings with a single framework covering all areas of central government. The contract will commence with work to support the audits of 2016-17 financial statements.

The services to be provided are expected to cover a wide range of resource and expertise and are expected to include, but are not limited to, external audit services, including providing reasonable assurance that income and expenditure have been applied to the purposes intended by Parliament, and that financial transactions conform to the authorities which govern them ('regularity'), as well as IT audits and information assurance work, related consultancy and provision of staff support and advice and training. This could require firms to undertake a range of work including, but not limited to, complete audits, the provision of specialist expertise on specific account or audit areas, and the provision of contract staff to work as part of NAO audit teams.