Scale audit fees

  1. What do you think the audit fees will be from April 2023?

    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 […]

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  2. Are you planning to set global fee variations that will be applied to all contracts when there is a change from the Regulator on what audit coverage is required?

    In November 2020, PSAA consulted on changes to fee variations arrangements. This was to introduce a new approach where changes in audit requirements relate to the conduct of all or most audits and where a standard cost can reasonably be estimated across groupings of bodies. On the basis of the positive response to the consultation, […]

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  3. What is the mechanism for allocating the cost of individual audit firm bids?

    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 (approx. 4%) 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 […]

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  4. Our current auditor disagreed with the approach taken by the previous auditor creating a large amount of work in terms of cost, time and effort. How does this work efficiently or even reliably?

    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.

    Read more of: Our current auditor disagreed with the approach taken by the previous auditor creating a large amount of work in terms of cost, time and effort. How does this work efficiently or even reliably?
  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?

    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 […]

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

    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 […]

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  7. Where the auditor says they need to do more work why do bodies need to pay more, and how can they be sure that they are paying a fair price?

    Auditors are required to deliver an audit that complies with the NAO Code of Audit Practice, i.e. complies with all auditing standards, 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 […]

    Read more of: Where the auditor says they need to do more work why do bodies need to pay more, and how can they be sure that they are paying a fair price?