Frequently Asked Questions

Does the appointing person take on all Auditor Panel roles and therefore mitigate the need for there to be one in each individual authority?

Opting in to the appointing person scheme removes the need for a body to set up an independent Auditor Panel. The detailed requirements for this are set out in the Local Audit and Accountability Act 2014 and the Local Audit (Appointing Person) Regulations 2015.

Read more on Does the appointing person take on all Auditor Panel roles and therefore mitigate the need for there to be one in each individual authority?

Given we are operating in a broken market, should we go for a shorter contract? 5 years at 80-20 seems like a blank cheque for too long a period.

Our view is that a key part of fixing the market is to go for a long contract as this gives the firms some certainty and acknowledges the investment they have to make in this specialist area. We certainly do not think that the 80-20 weighting is a blank cheque, as although audit quality is […]

Read more on Given we are operating in a broken market, should we go for a shorter contract? 5 years at 80-20 seems like a blank cheque for too long a period.

Have you considered the minimum fee approach as not just a monetary figure but setting a maximum percentage change from the existing fee structure?

As set out in its scheme prospectus, PSAA will implement a minimum scale fee level payable by opted-in bodies at the start of the next appointing period, for the audit of the 2023/24 accounts. Our independent research has indicated that based on the 2020/21 scope of audit work a minimum scale fee level of £31,000 […]

Read more on Have you considered the minimum fee approach as not just a monetary figure but setting a maximum percentage change from the existing fee structure?

How do you measure quality?

Our current arrangements for measuring the quality of the delivery of audit services are published. Our approach to tender evaluation for the 2022 audit services procurement seeks to reflect those areas which opted-in bodies tell us are important to them. We sought input from the FRC in developing our approach. The themes and their weightings […]

Read more on How do you measure quality?

How far must an auditor not meet their contractual obligations before PSAA will intervene and are there any repercussions for the audited body?

There are no direct repercussions for the audited body, but we recognise the problems that delayed audits cause. The Accounts and Audit Regulations 2015 set out the requirements for publishing accounts. There is a statutory deadline for the publication of audited financial statements, but this is only applicable when the body has audited accounts to […]

Read more on How far must an auditor not meet their contractual obligations before PSAA will intervene and are there any repercussions for the audited body?