Item 7 - External Audit Progress Report
West Dunbartonshire Council · 24 September 2025
Back to Audit Committee — 24 September 2025 and its agenda
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Audit Progress Report West Dunbartonshire Council August 2025
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Contents 1. Audit progress 2. National publications 3. FRC’s Audit Quality Inspection and Supervision Report 2025
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01Audit progress
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4 Audit progress Status High - Likely to result in a material adjustment or a significant change to disclosures in the financial statements. Medium - Potential to result in a material adjustment or a significant change to disclosures in the financial statements. Low - Not considered likely to result in a material adjustment or a change to disclosures in the financial statements. Property, plant and equipment We require confirmation of the floor area measurement for a sample of revalued buildings. Medium Other outstanding information Officers are working to resolve our outstanding queries in the following areas: • Cashflow statement • Leases • Reserves • Short term debtors. Medium Other outstanding audit work We are completing our audit procedures in the following areas: • Financial instruments disclosures • Group accounts consolidation. Medium Audit quality control and completion procedures Our audit work is undergoing review by the Engagement Lead, Engagement Manager and Engagement Quality Reviewer, and further quality and compliance checks. In addition, there are residual procedures to complete, including updating post balance sheet event considerations to the point of issuing the opinion, obtaining final management representations and agreeing adjustments to the final set of accounts. Medium Annual Report and Accounts and letter of representation We will complete our final review of the annual report and accounts upon receipt of the signed version of the accounts and letter of representation. Low Purpose of this report This report provides the Audit Committee with information about progress in delivering our responsibilities as external auditors for West Dunbartonshire Council. 2023/24 audit status We are finalising our audit of the Council’s annual accounts for the year ended 31 March 2024. See the outstanding matters, at the time of reporting, set out below. We continue to meet regularly with officers to discuss audit progress. We will present our Annual Audit Report to the Council meeting on 29 October 2025.
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02National publications
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National publications 1. Audit Scotland – Accounts Commission annual review 2024/25 The report provides a review of the work of the Accounts Commission and the auditors it appoints to work on its behalf. Link: Our work and impact: Annual review 2024/25 2. Audit Scotland – Delivering for the future: Responding to the workforce challenge The report highlights some of the common points identified by auditors in their Best Value thematic reports, including those councils where auditors highlighted specific examples of good practice. The report also sets out a summary of the Accounts Commission’s overall expectations for Best Value in this area. Link: Delivering for the future: Responding to the workforce challenge
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03FRC’s Audit Quality Inspection and Supervision Report 2025
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FRC’s Audit Quality Inspection and Supervision Report 2025 Audit quality The Financial Reporting Council’s (FRC) Audit Quality Inspection and Supervision Report 2025 on Forvis Mazars LLP was published on 15 July 2025, based on work undertaken during the 2024/25 inspection cycle, through review of a sample of our PIE and other AQR scope audits and other wider measures of audit quality such as the firm’s systems of quality management (SoQM). Audit quality inspections We are pleased that this year’s AQR results reflect our significant progress in delivering audit quality, showing a 90% profile of audits inspected as good or limited improvements required. Moreover, the combined results of AQR inspections together with the firm’s internal file inspections of AQR-scope audits this cycle show 86% as either good or limited improvements required. This is a testament to our team’s commitment to audit quality and their hard work, and the effectiveness of our long-term investment in audit quality through training, technology, leadership and a culture of continuous improvement. We are encouraged that the FRC recognises that the firm has continued to invest in audit quality and made good progress through our Audit Quality Transformation Plan (AQTP). The FRC also noted that the firm’s communications remain clear and consistent around the importance of audit quality, and the firm’s new four-year strategy and the firm’s new senior management continue to reinforce this message. System of quality management (SoQM) This is the first inspection cycle when ISQM (UK) has been applicable for the whole period, as 2023/24 was a transitional cycle from the ISQC (UK) 1. We have invested considerable time and resources in developing our SoQM and in monitoring responses, and we are pleased to see the FRC recognise this commitment. We recognise that whilst significant improvements have been made in the last year, we continue to enhance and develop our approach and documentation. We are in the process of addressing the findings raised this cycle – strengthening our responses to quality risks, design assessment and monitoring activities. Key actions To sustain and build on our progress, we will keep working hard and putting quality first, every time. We have strengthened our team, bringing in experienced individuals and top talent to support our success. We have taken robust actions to address the findings and root causes and apply the positive learnings. These include strengthening the firm’s policy on file archiving, reinforcing the guidance on group audits, and further improving our portfolio reviews and project management. We will sustain our efforts in ensuring that our quality plan and actions are fully embedded in our firm’s SoQM as part of ‘business as usual’ (BAU) and within the firm’s culture. Good practice on individual file inspections The FRC has identified examples of good practice, including on revenue, group audits and technical insurance provisions (including the involvement of actuarial specialists). These are positive indications of the effectiveness of our actions to enhance quality which are now better embedded into our firm’s SoQM. We are sharing these good practice examples with our teams to encourage similar practices to drive consistency and enhance audit quality. 4 4 5 4 9 2 1 4 4 0 1 3 0 1 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2020/21 2021/22 2022/23 2023/24 2024/25 Results of inspection of individual audits at Forvis Mazars over last five years 90%of audits inspected by the FRC in 2024/25 were assessed as requiring no more than limited improvements Good or limited improvements required Improvements required Significant improvements required Commitment to audit quality Audit quality remains a strategic priority for our firm and our people. Our commitment and key strategic priority is to ensure the delivery of high-quality audits and to play our part in safeguarding the public interest, restoring trust in audit and corporate governance. Whilst we are encouraged by the improvements, we know that audit quality is not a fixed point: sustaining the delivery of quality requires consistent focus on people, processes and technology. We remain focused on continuous improvement and on delivering audits that serve the public interest in the long term.
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Contact Forvis Mazars Tom Reid Director Tom.Reid@mazars.co.uk Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73 © Forvis Mazars 2025. All rights reserved.