The contracts that provide for PSAA to appoint the auditor to an opted-in authority are between PSAA and the audit firms, and authorities are not party to the contracts. Once appointed, an audit firm has a statutory relationship with the authority. Our contracts require audit firms to comply with the requirements of all relevant legislation, […]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
If an authority has chosen not to opt in to the appointing person arrangements, what local arrangements need to be put in place?
All relevant authorities listed in schedule 2 of the Local Audit and Accountability Act 2014 (the Act), whether they have opted 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 […]Read more
What will be the future arrangements under the appointing person scheme for certifying grant claims?
PSAA’s audit contracts from 2018/19 cover the audit of accounts of opted-in bodies only. PSAA has no power under the Local Audit and Accountability Act 2014 or the Regulations to make arrangements or appointments for assurance on grant claims and returns. Where government departments require assurance as grant paying bodies, tripartite agreements are required. Under […]Read more
The independence requirements for all auditors in 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 […]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 has contracted 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 be […]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
PSAA has consulted on the fee scale for 2018/19 on the basis of the prices achieved in its auditor procurement, the expected work programme for auditors, and the need to recover PSAA costs at the aggregate level. Individual scale fees are published on the website in March each year once confirmed by the PSAA Board […]Read more
In what circumstances can an auditor be changed during the five year opt-in period, and how does this differ from locally procured arrangements?
The main circumstances in which PSAA will consider changing an auditor appointment during the five year compulsory appointing period are either for independence reasons, for example the identification of a conflict of interest involving the existing audit firm, or because of the emergence of new joint working arrangements. An authority appointing its own auditor will […]Read more