PSAA undertakes contract monitoring of the firms it appoints. PSAA will seek feedback on its auditors as part of its engagement with the sector. PSAA has a clear process for managing complaints, which sets out those areas that it covers. It does not cover matters of professional judgement. We have a Memorandum of Understanding with […]Read more on What is the process to feed in opinions of current auditors if there are issues?
A series of questions and comments were made around the theme of timeliness, as shown below. Will you consider a contractual requirement for audit firms to take all reasonable measures to complete audits before the statutory deadline? The 2020 NAO Code of Audit Practice requires auditors to report on a timely basis, clearly, concisely, and […]Read more on What is your response to concerns around the timeliness of audit opinion delivery?
What metrics will be in the contract to ensure that the promised quality is delivered in practice and will there be financial penalties if it isn’t?
Technical audit quality is a measure for the FRC as regulator. The Ethical Standard precludes contracts that contain fees that vary according to a pre-determined measure (for example specifying a date by which an audit opinion must be given). We monitor the quality of audit services using a package of measures. We work with firms […]Read more on What metrics will be in the contract to ensure that the promised quality is delivered in practice and will there be financial penalties if it isn’t?
Our initial proposed approach to social value is based solely on audit apprenticeships and meaningful training opportunities, which demonstrate a commitment to local audit. This scope is narrower than the approach taken in 2017 but it does reflect that the collective, national nature of our contracts do not lend themselves to delivering a broad range […]Read more on What options for social value other than audit apprenticeships were considered?
What pressure will be brought on audit firms in the new contracts to ensure they comply with statutory deadlines?
There are many reasons that may impact the timely delivery of an audit opinion. Capacity is one of these and is likely to be an important quality criterion for the next procurement. Within the context of the local audit framework, we will consider all options available to us within the legal and ethical constraints as […]Read more on What pressure will be brought on audit firms in the new contracts to ensure they comply with statutory deadlines?
For clarity, the introduction of IFRS was a government decision in 2007 ‘to improve consistency and comparability’ and ‘to follow private sector best practice’. CIPFA recognises how complicated accounts have become and DLUHC has committed to looking at what can be done to make them more accessible. Please note that the implementation of IFRS16 has […]Read more on What’s gone wrong since the end of the Audit Commission – is it IFRS?
Where the auditor says they need to do more work for whatever reason why do I need to pay more, and how can I be sure that I am paying a fair price?
Auditors are required to complete an audit that complies with the NAO Code of Audit Practice, i.e. complies with all auditing standards. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 provides that where it appears to PSAA (as the appointing person) that the work involved in a particular audit was substantially more than […]Read more on Where the auditor says they need to do more work for whatever reason why do I need to pay more, and how can I be sure that I am paying a fair price?
Public Sector Audit Appointments Limited (PSAA) is an independent company limited by guarantee incorporated by the Local Government Association in August 2014. In July 2016, the Secretary of State specified PSAA as an appointing person for principal local government and police bodies for audits from 2018/19, under the provisions of the Local Audit and Accountability […]Read more on Who are PSAA?
As at April 2022, the ten registered firms are: BDO, Cardens, Deloitte, EY, Grant Thornton, KPMG, Mazars, PWC, Azets UK and Bishop Fleming. The ICAEW maintain the list of registers auditors.Read more on Who are the 10 audit firms registered to undertake local audit?
This evaluation ratio for an audit services procurement is consistent with other recently let public sector audit procurement contracts. It differs from the approach that we applied in our 2017 procurement as our market intelligence was that firms will not engage with bodies that do not value audit and adopt ratios that use a low […]Read more on Why have you proposed 80-20 quality to price weighting for the new contracts?