Additional information for 2025/26 audit fees and potential impact on audit input in subsequent years - Page 5 of 5

Appendix 1: Factors that may affect additional fees

Previous audits and current-year planning have identified no significant weaknesses.
Arrangements for financial sustainability, governance and value for money are stable and well documented.
The body has experienced no major incidents or significant reorganisations during the year.
The body uses few complex, unusual or innovative service delivery arrangements.
Financial information, including the annual accounts, is prepared on time and supported by a clear audit trail.
The Annual Governance Statement provides a clear and balanced account of the body’s arrangements.
Internal controls are effective, with no more than minor weaknesses.
The body provides complete and relevant supporting evidence.
The body responds promptly and fully to audit queries and interim reporting.

Previous audits or current-year planning has identified significant weaknesses.
Arrangements for financial sustainability, governance or value for money have changed materially or are not well documented.
The body has experienced a major incident or significant reorganisation during the year.
The body uses complex, unusual or innovative service delivery arrangements.
Financial information, including the annual accounts, is late, incomplete or lacks a clear audit trail.
The Annual Governance Statement does not provide a clear and balanced account of the body’s arrangements.
Internal control weaknesses are more than minor.
Supporting evidence is incomplete, unclear or inconsistent.
The body’s responses to audit queries or interim reporting are late or inadequate.
The auditor needs to consider interim or statutory reporting.

Addressing significant weaknesses and agreed actions from previous audits promptly, and monitoring progress.
Maintaining clear, current evidence for financial sustainability, governance and value for money arrangements.
Engaging with the auditor early about material changes, major incidents, reorganisations and complex service delivery arrangements.
Preparing financial information, including the annual accounts, on time and with a clear audit trail.
Providing a clear and balanced account of the body’s arrangements in the Annual Governance Statement.
Maintaining effective internal controls and current supporting documentation.
Documenting major decisions, risks, mitigations and financial implications clearly.
Providing complete, relevant and well-organised evidence to support financial reporting and value for money arrangements.
Responding promptly and fully to audit queries and requests for information.
Considering interim and statutory reporting promptly and maintaining open communication with the auditor.

The asset register is complete and agrees to the ledger
Valuation and indexation methods, including the choice of indices, are clear and consistently applied
Management has assessed impairment indicators and material movements
Instructions to valuers and source data are complete

Agreeing the valuation approach and timetable early
Quality-assuring asset data before it goes to the valuer
Documenting index selection, significant judgements and impairment reviews
Providing reconciliations and evidence to the auditor in line with the agreed timetable

Agreeing a phased evidence plan with the auditor
Prioritising balances identified in LARRIG 06
Preparing a documented reserves assessment with legal and accounting support where needed
There is sufficient appropriate evidence for the movements in reserves for each year in respect of which a non-standard or no opinion has been given