Accounting and auditing for local governments in the US and the UK

This paper offers a comparison of local government accounting and auditing in the US and the UK, including descriptions of the wider environment of the two governmental systems. The paper identifies two major differences in accounting. The first is that, in the US, the standard-setter makes requirements, whereas the UK policy-maker issues recommendations, which are sometimes not followed. The second is that, in the context of public reports outside the audited financial statements, the UK government has mandated the preparation and publication of performance measures by local governments.