The bid rates submitted in response to PSAA’s 2022 audit services procurement, covering the audits of 2023/24 to 2027/28, 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 […]
DLUHC previously consulted on fee variation arrangements for changes in audit requirements that relate to the conduct of all or most audits and where a standard cost can reasonably be estimated across groupings of bodies. Based on the positive response to that consultation, DLUHC enabled the changes by updating the Local Audit (Appointing Person) Regulations […]
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 2%) 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 […]
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.
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 […]
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 […]
PSAA must follow the requirements of the Local Audit (Appointing Person) Regulations 2015. The information we use to set the scale fees includes the previous year’s fees, fee variations that relate to recurrent requirements, and any new audit requirements. PSAA consults annually on the scale fees. Individual scale fees are published on this website each year […]
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 […]