PSAA Response
PSAA takes the consultation feedback seriously and remains committed to delivering a fair, transparent, and proportionate fee framework. While PSAA does not set audit standards or determine the scope of audit work, we work closely with system partners including audit firms, regulators, and the NAO to support improvements in audit timeliness and quality. Through our monitoring arrangements and contract management, we seek to ensure that audit services delivered to opted-in bodies meet expected standards and provide value for money.
We continue to advocate for a more proportionate audit scope and support CIPFA’s initiative to make financial statements more accessible and relevant. These efforts will help ensure audit effort is focused on material risks and aligned with sector needs.
While some consultees suggested anticipating future audit requirements within contracts, the current framework requires PSAA to set fees based on the Code of Audit Practice. To safeguard public funds, contracts do not include contingencies for future changes that cannot be quantified at the time of award. Any changes in audit scope must therefore be reflected in corresponding adjustments to audit fees.
We recognise the expectation that higher fees should lead to a more efficient audit experience. Addressing systemic challenges requires coordinated action across the sector, alongside appropriate funding and capacity. The LAO is expected to play a key role in supporting this objective and enhancing consistency in fee-setting.
We remain committed to improving transparency and predictability in fee structures. The inclusion of recurring audit work within scale fees supports financial planning, and we will continue to provide clearer breakdowns and guidance on future impacts from new standards. We are also strengthening engagement with opted-in bodies through more regular dialogue and feedback mechanisms.