Additional information
Communications
We have written to each body to set out the calculation of their scale fee based on these elements. The individual 2025/26 scale fees are available from the scale of fees page of our website.
Fee variations process
Audit requirements can change during an engagement, sometimes requiring significantly more or less work than originally planned. When this occurs, PSAA has the authority to vary the audit fee where the level of work differs substantially from what was envisaged in the scale fee. This may happen if audit risk or complexity changes, or if audit requirements increase or decrease.
Auditors must submit fee variation requests to PSAA using the standard process. We encourage early discussions between auditors and audited bodies, ideally reaching agreement before submission. However, PSAA reviews every request independently, regardless of local agreement, and determines whether it is justified. No variation is payable until PSAA has formally approved it.
Each request must include updated fee information and supporting evidence. Examples of potentially valid reasons include changes to the Code of Audit Practice, new regulatory requirements, or issues such as the introduction of a new financial system or inadequate working papers. Additional fees may also apply for work arising from auditors’ other responsibilities, such as considering third-party information, objections, or conducting investigations.
Further information on the fee variations process is available on our website.
Statement of responsibilities
The statement of responsibilities of auditors and audited bodies sets out the expectations on which scale fees are based. It effectively represents the terms of engagement between appointed auditors and audited bodies and summarises their respective responsibilities.
Scale fees are based on the expectation that audited bodies can provide the auditor with complete and materially accurate financial statements, along with supporting working papers within agreed timeframes. Where these requirements are not met, local fee variations may be necessary.
Additional audit costs arising from auditors not meeting their own obligations, for example inadequate preparation or repeated queries due to changes in audit teams are not eligible for fee variations.
Invoicing
Under the audit contracts applicable from 2023/24, payment to auditors is based on milestones linked to audit delivery.
The contracts have four predefined audit milestones, (each attracting 25% of the scale fee), at which point it is permissible for an audit firm to invoice an audited body.
The milestones have been updated for 2025/26 to recognise the arrangements to address the local audit backlog. The four milestones are:
| Milestone | Value | Delivery requirement |
| 1 | 25% | Paid on either prior year draft Auditor’s Annual Report or Opinion issued, but not before 1 December |
| 2 | 50% | Paid on draft Audit Plan production and issue |
| 3 | 75% | Paid on 50% planned hours delivered |
| 4 | 100% | Paid on 75% planned hours delivered |
Contracted audit firms collect fees from bodies as agents of PSAA.
Value added tax
Individual audit fees under the 2025/26 fee scale do not include value added tax (VAT), which will be charged at the prevailing rate, currently 20%, on all work done.
Enquiries
If you have questions about this fee scale please send them to us by email to: workandfeesconsultation@psaa.co.uk.