Frequently Asked Questions

If we decide to make local arrangements, can we specify what the audit covers?

Whether an auditor is appointed by PSAA or by local arrangements, the specification of a local audit is fixed. It is determined by the requirements of the: NAO’s Code of Audit Practice which sets the scope of the audit; the Code of Practice on Local Authority Accounting published by CIPFA/LASSAC which sets the format of […]

In addition to the Code of Audit Practice requirements set by the NAO, will the contracts include the audit of wholly owned companies and group accounts?

Local authority group accounts are part of the accounts produced under the CIPFA code of practice on local authority accounting and are subject to audit in line with the NAO Code of Audit Practice. They will continue to be part of the statutory audit for which PSAA makes an auditor appointment for opted-in bodies. Local […]

In what circumstances can an auditor be changed during the five year appointing 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 appointing period are: for independence reasons, such as the identification of a conflict of interest involving the existing audit firm; the emergence of new joint working arrangements where the appointment of the same auditor to all partners would be […]

We are a new body created after the opt-in period closed, can we join the scheme?

A newly established eligible body has the right to opt in by giving notice to PSAA. An eligible body who was invited to join but declined only has the right to request to become an opted-in authority. The notice must confirm the body’s decision to opt in, and must specify the body’s postal address. The […]

We are already a member of PSAA’s scheme, do we need to opt in again?

Yes, an eligible body needs to formally accept PSAA’s invitation for each individual appointing period. Acceptance of the invitation to opt in is valid only for appointing period specified in the invitation.

We are thinking of declining PSAA’s opt-in invitation, but what happens if we are unsuccessful in establishing local arrangements? Can we request to join the scheme?

An eligible body that does not accept the opt-in invitation for an appointing period may request to opt in during the appointing period only: for the audits 2018/19-2022/23, that is on or after 1 April 2018 for the audits 2023/24-2027/28, that is on or after 1 April 2023 PSAA must consider a request as the […]

We have a joint committee which no longer has a statutory requirement to have an external auditor but has agreed in the interests of all parties to continue to engage one. Is it possible to use this process as an option to procure the external auditor for the joint committee?

The requirement for joint committees to produce statutory accounts ceased after production of the 2014/15 accounts and they are therefore not listed in Schedule 2 of the Local Audit and Accountability Act 2014. Joint committees that have opted to produce accounts voluntarily and obtain non-statutory assurance on them need to make their own local audit […]

What are the arrangements for overseeing the quality of audit work undertaken by the audit firms appointed by the appointing person?

In accordance with the Local Audit and Accountability Act 2014, to provide local audit services firms and key audit partners must be registered with the ICAEW. The quality of the firms’ work will be subject to scrutiny by both the ICAEW and the Financial Reporting Council (FRC). The FRC and the ICAEW have their own […]

What are the arrangements under the appointing person scheme for certifying grant claims?

PSAA’s audit contracts cover an NAO Code of Audit Practice audit 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.

What are the benefits of opting in to PSAA’s scheme?

The national scheme offers a range of benefits for its members: transparent and independent auditor appointment via a third party; the best opportunity to secure the appointment of a qualified, registered auditor; appointment, if possible, of the same auditors to bodies involved in significant collaboration/joint working initiatives, if the parties believe that it will enhance […]