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.

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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 […]

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

We are currently researching the potential to introduce a minimum fee for some audits. This includes the possible impact on those bodies which had a current scale fee below any new minimum fee structure. We are engaging with all funding bodies regarding the fee procurement so that they are aware of our minimum fee proposals. […]

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How do you measure quality?

Our current arrangements for measuring the quality of audit services are published. We will be reviewing the evaluation methodology that we used in the last procurement (that can be found here [weblink]). Please note that it is the FRC that assesses the quality of the firms’ audit work in line with its statutory responsibilities.

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