Audit opinion
Councils are addressing significant challenges in achieving unqualified audit opinions on their financial statements.
Havering Council's external audit recovery timeline has been extended, with an unqualified audit opinion now anticipated no earlier than the 2029/30 financial year, as reported by external auditor Ernst & Young (EY) to the Audit Committee on 13 October 2026. This prolonged recovery is attributed to historic audit backlogs and previous disclaimed audit opinions, with no or limited procedures completed for multiple years.
Separately, Tower Hamlets Council received a disclaimed audit opinion for its 2024/25 financial statements, as highlighted in an external auditor's report presented in March 2026. EY reported that it could not obtain sufficient assurance over the council's financial position due to significant weaknesses in financial reporting and internal control systems, and a management-imposed limitation of scope.
An audit opinion is a statement by an independent auditor on whether financial statements are presented fairly. Councils aim for an unqualified audit opinion, which indicates that the financial statements are presented fairly in all material respects. A disclaimed opinion, as received by Tower Hamlets Council for 2024/25, means the auditors could not obtain sufficient assurance.
Key facts
- Havering Council's external audit recovery timeline has been extended, with an unqualified audit opinion anticipated no earlier than the 2029/30 financial year. Source 1 Source 2
- The Audit Committee of Havering Council received an update on its external audit on 13 October 2026. Source 1 Source 2
- External auditor Ernst & Young (EY) reported that Havering Council's audit has been significantly impacted by historic audit backlogs and disclaimed audit opinions. Source 1 Source 2
- Tower Hamlets Council received a disclaimed audit opinion for its 2024/25 financial statements. Source
- EY was unable to complete all planned audit procedures for Tower Hamlets Council's 2024/25 audit due to a management-imposed limitation of scope. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 14 October 2026. Spotted a mistake? Email community@opencouncil.network.