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, 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 more than that envisaged by the scale fee, then a larger fee may be charged.

PSAA has a robust process for reviewing and approving fee variations involving consultation with the audited body, and reviews of firms’ work programmes and audit files to assess proposals for additional fees submitted by auditors.