Firms are required to comply with the Code of Audit Practice (COAP), and when issuing a disclaimed audit opinion under the COAP they must have regard to the statutory guidance, which sets out that they should use professional judgement. The firms have performed work to issue a disclaimer opinion in line with the COAP/statutory guidance, […]
For bodies with only VFM arrangements-related fees and the fees for issuing a disclaimer opinion, there will be no separate scale fee charge. For all other fee variations this will depend on the circumstances of each body. Please note that for a disclaimed audit we will assess separately any fees in relation to audit work […]
We review and determine firms’ audit fee proposals in accordance with 17(2) of the Local Audit (Appointing Person) Regulations. Our work includes looking in detail at the fee variations submitted to assess whether we consider them to be appropriate. When making determinations we consider each individual fee variation and compare similar fee variations across all […]
The statement provides a breakdown of the individual fee variation elements we have considered and are minded to approve.
The bid rates submitted in response to PSAA’s 2022 audit services procurement, covering the audits of 2023/24 to 2027/28, required a significant increase in audit fees compared to our previous procurement in 2017. The factors that led to this increase principally relate to increased audit requirements and a less competitive local audit market. In consulting […]
Once appointed, auditors are independent and the decisions 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 mechanism for allocating the costs of individual firm bids is the scale fee, which allocates the total costs of all firms’ tenders and PSAA total costs (approximately 3%) in a proportionate way across all bodies. The scale fee does not vary in relation to which firm is appointed as auditor. Contingencies are not built […]
The local audit regulations require PSAA to specify the fee scale before 1 December of the financial year to which the audit fees relate. When we consult on and set the fee scale, we aim to update fees to reflect changes in audit requirements. These have changed significantly in recent years due to increased regulatory […]
We are very supportive of the overhaul of the local audit system. The government set out its approach to local audit in its Strategy for Local Audit Reform in December 2024 and provided further details in the outcome to its consultation published in April 2025. The reforms set out a clear purpose for local audit and […]
Auditors are required to deliver an audit that complies with the NAO Code of Audit Practice, and PSAA’s contracts are let on this basis. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 states that where it appears to PSAA (as the appointing person) that the work involved in a particular audit was substantially more than […]