The bid prices submitted in response to PSAA’s 2022 audit services procurement reflected a significant increase compared to our previous procurement in 2017. The audit industry has faced major challenges in the intervening period. In addition local audit faces several distinctive difficulties which have resulted in a less competitive market. In autumn 2023 PSAA will […]
The local audit framework, the respective roles of the different players, e.g. the FRC, the NAO, ICAEW, CIPFA, DLUHC and PSAA, and the nature of public audit means that any contract for the delivery of a code-compliant local audit will be different to a normal services contract. PSAA (or local bodies) cannot specify the audit […]
For both the 2017 and 2022 procurements, the quality evaluation of tender responses was independently observed by the LGA having put in place assurance to guarantee commercial confidentiality in the process.
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 […]
In 2020 PSAA commissioned independent research from Touchstone Renard to review the sustainability of the local government audit market. During the summer of 2021 we considered the feedback provided by the market and confirmed our approach to support the drive towards a more sustainable market for local public audit services. We summarised the outcome of the […]
We recognise that as part of the drive to improve audit quality the FRC is encouraging use of experts such as valuers, and audit firms can claim additional fees for appropriate use via the additional fees process.
As at March 2023, the nine registered firms are: Azets Audit Services, BDO, Bishop Fleming, Deloitte, EY, Grant Thornton, KPMG, Mazars and PWC. The ICAEW maintain the list of registered auditors.
Once appointed, auditors are independent and the decisions that they take are down to their professional judgements. There may be differences in judgement between years by individuals from the same firm as views change or where more evidence becomes available.
The evaluation ratio of 80% quality and 20% price for an audit services procurement is consistent with other recently let public sector audit procurement contracts. It differs from our approach to the 2017 procurement as our market intelligence was that firms would not engage with bodies that did not value audit and used ratios of […]
The procurement of audit services for opted-in bodies is a key component of the appointing person arrangements. Ahead of each audit services procurement PSAA develops and publishes a procurement strategy that is shaped by market conditions and the views of eligible bodies and local audit stakeholders. Details of PSAA’s previous audit procurements are published on […]