Terms of Appointment

This page provides the Terms of Appointment for auditors issued by Public Sector Audit Appointments Limited (PSAA).

PSAA is responsible for appointing auditors, setting audit fees, overseeing the delivery of consistent, high quality and effective audit services to local public bodies, and ensuring effective management of the contracts with the audit firms.

The Terms of Appointment set out additional requirements that auditors must comply with, over and above those set out in the Code of Audit Practice (the Code) issued by the National Audit Office (NAO) and in legislation, and cover matters of practice and procedure which are of a recurring nature. Each year, we will assess auditors’ compliance with these statutory Terms of Appointment. The key aspects of compliance that will be monitored are:

  • the delivery of audit outputs against target dates;
  • consideration and, if appropriate, approval of auditors’ requests for variations to the scale audit fee where they have had to carry out more (or less) work; and
  • consideration of, and where we are satisfied that the work does not create a threat to the auditor’s independence, approval of auditors’ proposals to provide non-audit services to audited bodies.

The Terms of Appointment are not year-specific and will be updated regularly as changes are required.

From 2018/19

PSAA is specified as an appointing person under the provisions of the Local Audit and Accountability Act 2014 and regulation 3 of the Local Audit (Appointing Person) Regulations 2015. The 2018/19 Terms of Appointment are issued in accordance with its contracts with firms to provide audit services to opted-in bodies.

Appointing Person Terms of Appointment 1 April 2018

2017/18 and earlier years

For 2017/18 and earlier years, under Schedule 1 of the Local Audit and Accountability Act 2014, all contracts for audit and related services let by the Audit Commission were transferred to PSAA on 1 April 2015 and the Terms of Appointment were issued by PSAA under powers delegated by the Secretary of State for Communities and Local Government.

Terms of Appointment 2017/18 and earlier years