The proximity of the backstop dates for the up to 2022/23 and 2023/24 audits meant that we received fee variation proposals for over 700 audits in a short period. We are still working to process all fee variations and we are doing all we can to ensure we do so thoroughly, effectively and efficiently. The […]
We chose not to determine fee variations related to the issuing of a disclaimed opinion until MHCLG had confirmed the arrangements for allocating the £49 million additional funding announced in April 2025. MHCLG paid the first funding instalment in June 2026 and set out further information about the allocations in a technical note. Disclaimer fee […]
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 […]