NEWS RELEASE: PSAA responds to the NAO‘s consultation on VFM arrangements guidance and Public Audit Forum exposure draft of Practice Note 10

PSAA has responded to the NAO’s consultation on its Auditor Guidance Note (AGN 03) that provides guidance to auditors to support their work on value for money (VFM) arrangements.

PSAA response to consultation on AGN-03

PSAA is supportive of the change to a VFM arrangements commentary in that it should enable auditors to add more value but recognises that it is likely to result in both additional audit costs and demands on officers. Arguably this comes at a time when auditor’s assessments are more valuable than ever, but also at a time when resources are under more pressure than before, and so it is vital that the change is itself good value for money.   Our response encouraged the NAO to evaluate the success of the change to a VFM arrangements commentary from the current VFM arrangements opinion.

PSAA has also responded to the Public Audit Forum’s exposure draft of Practice Note 10, which sets out how UK public sector auditors apply auditing standards to their work on financial statements.

PSAA response to consultation on PN10

We welcomed the revision and the intention to update it annually, but also called for it to be more widely publicised as it has an important part to play in the debate about how auditing standards are applied in the public sector, given that they are primarily designed for the private sector.