Fee variation process

Outline of the process as of April 2021 (updated January 2022)


Review process final stages

A PSAA officer will consider all the information and explanations provided then draft comments (taking advice as appropriate) on the proposed fee variation and either make a determination on the fee variation or make a proposal as to the status of the variation selecting from the following options:

Option Description
Agree No issues identified from the checks performed, we can agree the variation proposal.
Agree lower Although we accept that additional work is needed, in our view there is insufficient acknowledgement that some of the work detailed could have been done more efficiently or that some of it is covered by the scale fee.
Agree higher No issues identified from the checks performed, however, we believe that the fee variation proposal submitted is not sufficient to cover the additional work detailed.
Rejected The work detailed is covered by the scale fee or was not required (occasionally we find that the auditor has submitted a fee variation proposal for work that does not relate to their responsibilities under the Code).
More information required We need further information to help us understand the fee variation proposal submitted. This is normally a more detailed breakdown of the work performed, or a report to confirm that any matters raised have been reported to TCWG.
Being considered We may need to speak to a body about a fee variation proposal (for example because it has not been agreed).
Deferred The fee variation is at too early a stage for us to be able to make a decision (for example we are waiting for some further examples so that we can compare).
Withdrawn A firm confirms that a fee variation is no longer required.

A PSAA officer (normally Senior Quality Manager or Chief Executive) then reviews each fee variation.

An appropriate PSAA officer (normally the Finance Manager) sends the updated forms to the firms using the secure transfer facility. Firms can invoice for approved fee variations at this stage.

Firms invoice the body once the variation is agreed by PSAA.

Once our considerations have been completed, we write to audited bodies to notify them about our fee determinations and provide a summary of fee variation proposals we have approved.

April 2021

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