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?Does the unnecessary complexity of local government accounts prevent smaller firms entering the marketplace and make audits unnecessarily long?
DLUHC has recognised this issue in the Spring statement and elsewhere.
Read more on Does the unnecessary complexity of local government accounts prevent smaller firms entering the marketplace and make audits unnecessarily long?Extending the deadlines beyond September is not the answer.
We appreciate the disruption that results from delayed audits, as summarised by the NAO in its report in March 2021 on the timeliness of local government audit reporting. We also recognise that the impact on bodies with small finance teams can be more intense. However, regardless of the statutory position or the contractual requirements, a […]
Read more on Extending the deadlines beyond September is not the answer.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 are audit fee levels set for each individual body?
PSAA follows the requirements of the Local Audit (Appointing Person) Regulations 2015. PSAA consults annually on the fee scale. Individual scale fees are published on this website each year once confirmed by the PSAA Board following consultation. We will continue to pool scheme costs and charge fees to audited bodies in accordance with our published […]
Read more on How are audit fee levels set for each individual body?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 does an eligible body become an opted-in body?
A decision to become an opted-in body must be taken in accordance with the Regulations that is by the members of an authority meeting as a whole, except where the authority is a corporation sole, such as a police and crime commissioner, in which case this decision can be taken by the holder of that […]
Read more on How does an eligible body become an opted-in body?How does PSAA procure audit services contracts?
The procurement of audit services for opted-in bodies is a key component of the appointing person arrangements. For the appointing period 2018/19 to 2022/23, PSAA has published the outcome of its procurement in 2017 to establish contracts. For the appointing period 2023/24 to 2027/28, PSAA has developed its procurement strategy and launched a procurement in […]
Read more on How does PSAA procure audit services contracts?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?