Frequently Asked Questions

How will PSAA encourage small audit firms to enter the market?

During summer 2021 we will consider the feedback provided by the market and confirm our approach to support the drive towards a more sustainable market for local public audit services. We will summarise the outcome of the market engagement in a report that we expect to publish in late August – early September. Please note […]

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How will the appointing person scheme manage a situation where an opted-in body is dissatisfied with its auditor and wants a change (e.g. because of quality, relationships, or a conflict of interest)?

Where an opted-in body is dissatisfied with its auditor, concerns should be raised in the first instance with the appointed auditor’s Engagement Lead and subsequently with the firm’s PSAA Contact Partner (as indicated on communications between the auditor and the body). If the body is not satisfied with the response of the auditor, then the […]

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If we decide to make local arrangements, can we reduce the audit services fee if the audit opinion is not delivered by the statutory publishing date?

The terms of the contract through which an auditor is appointed by local arrangements will determine how the service is provided and the remuneration arrangements. The Ethical Standard issued by the FRC in December 2019 precludes contingent fees on audit engagements. A contingent fee basis includes any arrangement made at the outset of an engagement […]

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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 […]

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