The Local Audit and Accountability Act 2014 requires that firms and individuals must be authorised to undertake the audits of the bodies specified in the legislation. This is managed by ICAEW, which maintains a register of approved firms and individuals. For organisations that have opted into the PSAA arrangements, PSAA acts as the appointing person […]
Following the abolition of the Audit Commission, the local audit system was deliberately fragmented across several bodies. The National Audit Office produces the Code of Audit Practice which instructs and advises auditors on their legal responsibilities. The Financial Reporting Council regulates the quality of audit work, while ICAEW determines the eligibility of firms and individuals […]
If your organisation meets the requirements to be treated as a smaller authority, it will automatically fall under the SAAA regime unless it opts to be treated as a ‘full audit authority.’ PSAA contracts with supplier firms to deliver audits for organisations that require an audit under the Local Audit and Accountability Act 2014. Your […]
Once appointed, auditors are independent and PSAA is unable to direct their work. The Ethical Standard issued by the FRC prohibits contingent fee arrangements. This includes any agreement made at the start of an engagement where a set amount or percentage is payable to the firm upon the occurrence of a specified event or the […]
The financial statements are the responsibility of the Authority, and they retain full accountability for their preparation. Auditors are appointed to provide an independent audit of these statements, not to prepare them. The expectations for both auditors and audited bodies are outlined in the Statement of Responsibilities, available on our website. We continue to advocate […]
We anticipate that senior members of the audit team will participate in key meetings throughout the year, such as those where the audit plan or findings are being presented. Attendance at other meetings will be determined collaboratively, based on the nature of the business being discussed and through agreement between the organisation and the Key […]
Across all audited bodies, the proposed average scale fee increase was 4%. Where there were no confirmed changes in the level of audit work required, the increase will be 2.8%. Any increase above 2.8% reflects a confirmed additional requirement, such as the inclusion of a new group in the audit scope. Taken together, these adjustments […]
The Scale Fee represents our best estimate of the cost of delivering a standard audit. We expect that general first-year costs are incorporated within the firm’s overall bid rate or otherwise absorbed by the firm. In cases where exceptional additional costs arise, such as auditing a PFI scheme, these are addressed through the fee variation […]
The contracts agreed with firms in 2022 run for a five-year term, with the option of a two-year extension. To ensure continuity and maintain auditor capacity, it was necessary to include provisions that mitigate the impact of inflation. This is a standard practice for contracts of this length and helps support stability and sustainability of […]
Under the Local Government Pension Scheme there is an administering body that oversees the pension fund for an area, for example a county council. That body administers the scheme on behalf of ‘admitted bodies’ in the area such as district councils. The admitted bodies’ pensions figures will be material and are largely estimated. The auditors […]