We work with public sector comptrollers’ offices (Intervenciones) on public audit and financial control, and provide accounting and asset management support to town councils and their dependent entities.
Reviewed by Controlaudit's audit team · Firm registered with the ROAC under no. S1604 · Updated 13 October 2026
The Spanish General Budget Act (Ley General Presupuestaria) defines public audit as the subsequent, systematic verification of the economic and financial activity of the public sector through selective review procedures set out in the auditing standards and instructions of Spain's General State Comptroller (Intervención General de la Administración del Estado, IGAE) (art. 162 of Law 47/2003). It takes three forms: financial (accounting regularity) audit, compliance audit and performance (operational) audit (art. 164). At local level, Royal Decree 424/2017 applies this framework to financial control, which is carried out through ongoing control and public audit (art. 29).
Audits of public sector accounts are governed by the auditing standards for the Spanish public sector, based on the NIA-ES (NIA-ES-SP), approved by the IGAE Resolution of 25/10/2019, together with their explanatory notes and the Code of Ethics for public audit. Public sector entities fall outside the mandatory audit regime of the Spanish Audit Act, except for state-owned trading companies (First Additional Provision, section 2, of Law 22/2015): they are controlled by internal control bodies, which may rely on private firms.
Controlaudit Auditores Certificados (ROAC no. S1604) works with local and regional comptrollers' offices, always under their instructions, on audits of accounts, compliance audits and performance audits, and on grant control. We also provide economic and accounting assistance and asset management support to local authorities throughout Spain.
The consolidated text of the Spanish Local Finance Act (Ley Reguladora de las Haciendas Locales, TRLRHL) gives local authorities internal control over their economic management, their autonomous bodies and their trading companies, through prior audit (función interventora), financial control (including the audit of the accounts of designated entities) and effectiveness control (art. 213). Royal Decree 424/2017 develops this: the comptroller must ensure, using in-house or external resources, effective control of at least 80% of the consolidated general budget, reaching 100% over three consecutive years on the basis of a risk analysis (art. 4.3).
Art. 34 of Royal Decree 424/2017 allows the local authority, on the comptroller's proposal, to engage private audit firms, which must follow the comptroller's instructions. It sets limits: a maximum contract of two years, extendable in accordance with public procurement legislation, a maximum of eight years of work on the same entity and a two-year cooling-off period after that. Nor may a firm be engaged if, in the same or the previous year, it has carried out other work for the entity on the areas on which it must report.
In the central government public sector, the IGAE may seek the collaboration of audit firms to carry out its annual audit plan, subject to its rules on independence (Second Additional Provision of Law 47/2003). As regards asset management, the Regulation on Local Authority Property (Reglamento de Bienes de las Entidades Locales, RBEL) requires an inventory of all assets and rights to be drawn up (art. 17), updated every year and checked whenever a new council takes office (art. 33).
| Situation | Rule | What it means |
|---|---|---|
| Public audit in local authorities | Art. 29 RD 424/2017 | Audit of accounts, compliance audit and performance audit in accordance with IGAE standards and instructions. |
| Collaboration of private firms with the local comptroller's office | Art. 34 RD 424/2017 | On the comptroller's proposal and under the comptroller's instructions; maximum of 2 years, extendable, and 8 years on the same entity. |
| Minimum control coverage | Art. 4.3 RD 424/2017 | Effective control of 80% of the consolidated budget, and of 100% over three years. |
| Technical standards for public sector audits of accounts | IGAE Resolution of 25/10/2019 | Application of the NIA-ES-SP, their explanatory notes and the Code of Ethics. |
| General Account of the local authority | Arts. 208 to 212 TRLRHL | Submission before 15 May, report of the Special Accounts Committee before 1 June and approval by the full council before 1 October. |
| Asset inventory | Arts. 17 and 33 RBEL | Inventory of all assets and rights, annual update and check when a new council takes office. |
Collaboration with the comptroller's office on audits of the accounts of dependent entities, compliance and performance audits, and support with the ongoing control included in the annual financial control plan.
Review of grant expenditure statements for grants funded with European, national or regional funds awarded to local authorities and universities. Further information under grant audit.
Support for finance departments in preparing the General Account, drawing up the budget and its outturn, accounting opening, closing and adjustment entries, and submitting accounting, budgetary and economic information to the Ministry of Finance, the regional external audit body and the relevant autonomous community.
Design of manuals of rules and procedures, preparation or updating of the asset inventory, integration of the inventory with the accounting records, improvement of information systems and staff training.
Support for national and regional comptrollers general in carrying out their annual financial control or audit plan, when they seek private-sector collaboration.
We start from the annual financial control plan or the specific needs of the finance department and define the scope, type of audit and entities involved.
The engagement is formalised in accordance with public sector procurement legislation and the limits of art. 34 of Royal Decree 424/2017. Before submitting a bid, we check our independence from the entity.
We review the control environment, the applicable regulations and the entity's risks, and agree the work programme with the comptroller's office.
We apply the procedures of the NIA-ES-SP and the comptroller's instructions, or carry out the agreed accounting and asset management work. The timeframe depends on the scope and the plan's schedule.
We deliver the draft to the comptroller's office, which is responsible for the control reports, and support the follow-up of recommendations and corrective measures.
Yes. Art. 34 of Royal Decree 424/2017 allows the local authority, on the comptroller’s proposal, to engage private audit firms to collaborate on public audit. The firm acts under the instructions of the comptroller, who remains responsible for the control.
Each contract has a maximum term of two years, extendable in accordance with public sector procurement legislation. Successive contracts may not exceed eight years of work on the same entity, after which there is a two-year wait before the same firm can be engaged again.
They are the International Standards on Auditing as adapted for the Spanish public sector, approved by the Resolution of Spain’s General State Comptroller (IGAE) of 25/10/2019, together with their explanatory notes and the Code of Ethics for public audit. They apply to audits of public sector accounts.
Spain’s General Budget Act (Law 47/2003) distinguishes between financial (accounting regularity) audit, compliance audit and performance (operational) audit (art. 164). At local level, art. 29 of Royal Decree 424/2017 refers to audit of accounts, compliance audit and performance audit.
The First Additional Provision, section 2, of the Spanish Audit Act (Law 22/2015) excludes public sector entities from its mandatory audit regime, except for state-owned trading companies. Municipal companies are, in addition, subject to the financial control of the comptroller’s office. Each dependent entity should be analysed individually.
Support for finance departments with the General Account, the budget and its outturn, year-end closing and opening entries, balance adjustments and the submission of information to other public authorities. The work is tailored to the resources of each town council.
The Regulation on Local Authority Property (Reglamento de Bienes de las Entidades Locales) requires an inventory of all assets and rights to be kept, updated every year and checked whenever a new council takes office. Without an inventory reconciled with the accounting records, the balance sheet does not give a true and fair view of the entity’s assets.
Yes. We work with public entities throughout Spain and adapt our work to the applicable regional legislation in each case. Contact us to discuss your case.
Legislation cited on this page, linked to its official text:
General information updated on 13/10/2026. It is not a substitute for an analysis of your specific case.
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