In its consultation document, published in September, the NAO proposed a single, principles based code covering the audit of all different types of local public body. The NAO also proposes to issue detailed guidance on a variety of topics to supplement the Code.

Overall the FRC supports the proposal to produce a single, principles based Code and are generally supportive of the principles set out in the draft Code.  However, they do have some comments on specific matters.

The FRC consider it important that the Code requires that auditors should comply with the FRC's ethical standards, auditing standards and other relevant guidance. For those activities for which the FRC has not produced standards, such as assessment of value-for-money arrangements, they believe that it is important that the detailed guidance provides a basis for consistent high quality work. This guidance should also address specific statutory requirements that lead to auditors having different responsibilities from those covered by the Code's principles of audit.

The full response letter is available from the FRC website.