Additional audit costs may arise where auditors are unable to obtain the information they need in accordance with the agreed timetable. Examples may include delays in providing supporting information, working papers or audit samples, or circumstances where a body is not ready for audit on the agreed timetable.
The quality of information provided can also have an impact. For example, where working papers are incomplete, unclear or do not adequately support the figures in the financial statements, auditors may need to undertake further enquiries or request additional evidence before they can complete their work.
Additional fees are not automatically approved in such situations, but auditors may seek a fee variation where additional work has genuinely been required. PSAA reviews the supporting evidence before determining any fee variation.