Former BDO chief Jeremy Newman was today appointed as the final chairman of the Audit Commission, replacing Michael O'Higgins as the spending watchdog's chair.

Set to assume the role from the start of October, Mr Newman will be responsible for overseeing the efficient wind-down of the Commission, and the delivery of its reduced functions in the run up to its closure.

Communities secretary, Eric Pickles said: ‘I am pleased to announce the appointment of Jeremy Newman as new Chairman of the Audit Commission. Jeremy brings significant knowledge of audit and a proven track record of delivery, which will be essential as he oversees the Commission's closure and the smooth transfer to the new local audit regime'.

Earlier this year the Commission's in-house audit practice was outsourced to the private sector, and ministers claim a decentralised approach to audit could save the public purse up to £650m in audit fees over the next five years.

Following publication in July of the draft local audit Bill, the Government is consulting over plans for a new audit framework for public bodies, a new regulatory framework and process for appointing auditors. 

When scrutinised by the communities and local government select Committee during his pre-appointment hearing, MPs were impressed with the breadth of Mr Newman's experience within the financial audit sector and enthusiasm for helping deliver the new audit framework for local government.

Mr Newman, who is a professional chartered accountant will earn £30,000 a year for 6 days a month, a marked reduction on the previous chair's annual pay of £90,487.