Summary of the response to PSAA’s consultation on a proposed new system for fee variations

PSAA’s role in local audit

In the local audit framework PSAA’s responsibilities as the appointing person are specifically to appoint auditors to opted-in bodies, set scales of fees, and manage contracts with audit firms for delivery of external audit services to opted-in bodies.

The National Audit Office sets the scope of auditors’ work in the Code of Audit Practice, published on a five-yearly cycle. The Financial Reporting Council determines regulatory requirements, often as a result of its annual audit quality reviews once an audit year is completed. CIPFA/LASAAC prescribes the financial reporting requirements applicable to local government bodies. All these requirements shape the work auditors undertake and have a bearing on the actual fees required.

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