ACCOUNTING FOR THE AUDIT COMMISSION.

This article reports on the Audit Commission for Local Authorities in Great Britain which was established under the Local Government Finance Act 1982 and took up its responsibilities in early 1983. The aim of external auditing of local government, under the direction of the Commission, is now not merely the continuation of traditional financial and regularity audits, but also to judge the "economy," "efficiency," and "effectiveness," of local authorities' operational arrangements and accomplishments. In its first four years, the Commission claims to have identified £492 million of potential savings by local authorities, and forecasts further savings in excess of £150 million annually.