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, PSAA resolved to implement the proposed changes as set out in its response to the consultation.

If auditors are required to do significantly less work because of regulatory change, then the scale fee would be reduced accordingly. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 enables us to vary fees up or down, where significantly more or less work is needed to complete a Code compliant audit.