Auditor appointments

  1. Does PSAA require its contracted audit firms to demonstrate how they will minimise environmental impact/address climate change issues?

    9 May 2023

    PSAA’s audit services contracts covering the audits from 2018/19 to 2022/23 include a clause in relation to ‘Co-operation with PSAA on environmental issues’. This states that “Throughout the Contract the Supplier shall co-operate with PSAA in seeking reasonable and practical ways to improve the sustainability of the delivery of the Services”. There is a requirement […]

    Read more of: Does PSAA require its contracted audit firms to demonstrate how they will minimise environmental impact/address climate change issues?

  2. In addition to the Code of Audit Practice requirements set by the NAO, do PSAA’s contracts include the audit of wholly owned companies and group accounts?

    15 June 2023

    Local authority group accounts are part of the accounts produced under the CIPFA Code of Practice on Local Authority Accounting and are subject to audit in line with the NAO Code of Audit Practice. They continue to be part of the statutory audit for which PSAA makes an auditor appointment for opted-in bodies. Local authority […]

    Read more of: In addition to the Code of Audit Practice requirements set by the NAO, do PSAA’s contracts include the audit of wholly owned companies and group accounts?

  3. Does the appointing person scheme cover the audit of an authority’s pension fund where it is the administrative body responsible for preparing the pension fund accounts?

    15 June 2023

    Pension funds are not separate legal entities from their administering local authority for audit, and are therefore not listed as relevant authorities in schedule 2 of the Local Audit and Accountability Act 2014. The auditor appointment to an opted-in local authority includes the audit of the pension fund where the authority is the administering body. […]

    Read more of: Does the appointing person scheme cover the audit of an authority’s pension fund where it is the administrative body responsible for preparing the pension fund accounts?

  4. We have a joint committee which no longer has a statutory requirement to have an external auditor but has agreed in the interests of all parties to continue to engage one. Is it possible to use PSAA’s national scheme to procure the external auditor for the joint committee?

    15 June 2023

    The requirement for joint committees to produce statutory accounts ceased after production of the 2014/15 accounts and they are therefore not listed in Schedule 2 of the Local Audit and Accountability Act 2014. Joint committees that have opted to produce accounts voluntarily and obtain non-statutory assurance on them need to make their own local audit […]

    Read more of: We have a joint committee which no longer has a statutory requirement to have an external auditor but has agreed in the interests of all parties to continue to engage one. Is it possible to use PSAA’s national scheme to procure the external auditor for the joint committee?

  5. What is PSAA doing alongside other local audit stakeholders to help design and implement a system which is more stable, more resilient, and more sustainable?

    22 June 2023

    We continue to work closely with a range of local audit stakeholders including DLUHC, the FRC, the NAO, CIPFA, ICAEW and the LGA to help identify and develop further initiatives to strengthen the local audit. Our e-bulletins provide details of recent developments. We know that there is a long way to go before something approaching a […]

    Read more of: What is PSAA doing alongside other local audit stakeholders to help design and implement a system which is more stable, more resilient, and more sustainable?

  6. What is the process for making auditor appointments for the appointing period?

    15 June 2023

    PSAA has a duty to make appointments to all bodies that opt into the schemes. We have published our approach to auditor appointments for the two five-year appointing periods from 2023/24 to 2027/28 and from 2018/19 to 2022/23. When we make auditor appointments we consider any formal joint working or shared service arrangements where these […]

    Read more of: What is the process for making auditor appointments for the appointing period?

  7. In what circumstances can an auditor be changed during the five-year appointing period, and how does this differ from locally procured arrangements?

    22 June 2023

    The main circumstances in which PSAA will consider changing an auditor appointment during the five-year appointing period are: An eligible body appointing its own auditor may find it more difficult to change their auditor during the contracted period, not least because it would require undertaking a new selection and procurement exercise. It is important to […]

    Read more of: In what circumstances can an auditor be changed during the five-year appointing period, and how does this differ from locally procured arrangements?

  8. What can I expect from PSAA once an auditor appointment has been made?

    22 June 2023

    PSAA will provide effective management of the contracts with appointed audit firms. Details of our contract management arrangements are on our website and in these FAQs under the topic ‘Contract Management’. We will meet regularly with the public sector leads at each contracted firm and ensure that matters concerning opted-in bodies are brought to their […]

    Read more of: What can I expect from PSAA once an auditor appointment has been made?

  9. 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)?

    9 May 2023

    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 […]

    Read more of: 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)?