According to a source who is an expert in internal audit services to public companies, internal controls are not very effective when executives collude and conceal information.

FORBES: A Tale of Two Lawsuits -- PricewaterhouseCoopers and Colonial Bank

While larger local authorities with bigger budgets may find it easy to adapt to the changes, the committee is concerned that the 9, 800 smaller bodies, including parish councils and internal drainage boards, which have been entitled to low-cost services from the Audit Commission, will struggle to cope.

BBC: Audit Commission's abolition could be dangerous, say MPs