PSAA is consulting on the audit fee scale for 2021/22.
The consultation takes place against the backcloth of four recent Government-commissioned reviews of audit, including the Redmond review of local audit and financial reporting, and in the context of the significant tensions and pressures currently present in the audit market and profession. It is carried out in accordance with the relevant provisions of the Local Audit (Appointing Person) Regulations 2015, including the requirement to consult on and set the fee scale before the start of the relevant financial year. This imposes a very challenging timetable, given that a great deal of information which would ideally be available to inform the setting of the scale is simply unavailable at this stage in the audit cycle.
The consultation document explains how PSAA proposes to calculate the fees which will make up the 2021/22 fee scale. Our proposal involves two key variables: the ongoing implications of fee variations approved in relation to 2018/19 audit work, where additional audit work is required, and the implications of further anticipated developments in relation to auditing and financial reporting standards. We explain in this document how we propose to tackle each of these issues and how we plan to communicate the impact of each to individual bodies. We will be writing to all opted-in bodies individually to confirm the position on the ongoing elements of 2018/19 fee variations.
Consultation on 2021-22 audit fee scale (pdf file)
We welcome comments from all stakeholders on the proposals contained in the consultation. Please send your feedback using Survey Monkey.
The consultation will close on Friday 19 February 2021.
Please send any questions about the consultation to [email protected]