An auditor appointed under the Local Audit and Accountability Act 2014 must be eligible for appointment as a local auditor. The duty to license and register local auditors who will carry out the audit of local public bodies is a statutory function delegated to recognised supervisory bodies (RSBs) by the Financial Reporting Council. RSBs are […]Read more
No, an authority’s notice of acceptance of PSAA’s invitation to opt in means it is opted in for the duration of the compulsory appointing period (five years from 2018/19), unless the body ceases to exist or the body ceases to fall within the classes of authorities for which PSAA is the appointing person.Read more
Can an eligible local government body still opt in if it misses the deadline for close of the opt-in period on 9 March 2017?
A body that received an invitation to opt in for the compulsory appointing period beginning 1 April 2018 but did not submit a formal notice of acceptance of the invitation before the close of the opt-in period, as specified in the Regulations, cannot later opt in automatically for the auditor appointments effective from 2018/19. It […]Read more
If an authority chooses not to opt in to the appointing person arrangements, what local arrangements will they need to put in place?
All relevant authorities listed in schedule 2 of the Local Audit and Accountability Act 2014 (the Act), whether they opt in or not, are required to comply with Part 3 of the Act in relation to the appointment of local auditors. Section 7 of the Act requires a relevant authority to appoint a local auditor […]Read more
What will be the future arrangements under the appointing person scheme for certifying grant claims?
PSAA’s audit contracts from 2018/19 will cover the audit of accounts only. PSAA has no power under the Local Audit and Accountability Act 2014 to make arrangements or appointments for assurance on grant claims and returns, and its appointing person arrangements will cover opted-in bodies only. Where government departments require assurance as grant paying bodies, […]Read more
The independence requirements for all auditors within the local public audit regime are the same whether locally appointed, or part of the appointing person regime. These requirements are specified by the Financial Reporting Council in the Ethical Standard and applied to local public audit as determined by the NAO. The services that an auditor can […]Read more
How will the appointing person scheme deal with an authority that is dissatisfied with its auditor and wants a change (e.g. because of quality, relationships, or a conflict of interest)?
As with the current arrangements, where an authority is dissatisfied with its auditor, concerns should be raised in the first instance with the firm’s Engagement Lead and subsequently with the firm’s PSAA Contact Partner (as indicated on communications between the firm and the authority). If the authority is not satisfied with the response of the […]Read more
What will be the arrangements for overseeing the quality of audit work undertaken by the audit firms appointed by the appointing person?
PSAA will only contract with firms which have a proven track record in undertaking public audit work. In accordance with the Local Audit and Accountability Act 2014, firms must be registered with one of the chartered accountancy institutes acting in the capacity of a Recognised Supervisory Body (RSB). The quality of the firms’ work will […]Read more
PSAA will seek feedback on its auditors as part of its engagement with the sector. PSAA will continue to have a clear complaints process and will also undertake contract monitoring of the firms it appoints.Read more
How will audit fee levels be set for each individual body with the objective of recovering PSAA costs at the aggregate level?
PSAA will pool scheme costs and charge fees to audited bodies in accordance with a fair scale of fees which has regard to size, complexity and audit risk, most likely as currently evidenced by audit fees for 2016/17. Pooling means that everyone in the scheme will benefit from the most competitive prices. Fees will reflect […]Read more