We grouped the affected audits by the number of audit years subject to disclaimed opinions. A larger number of outstanding years generally requires more planning, coordination and preparation for build-back. PSAA compared each firm’s portfolio profile with its disclaimer and build-back costs and average cost per affected body. It also reviewed the number of affected bodies, the type of work, staff time and rates, and significant differences between firms. The final 7% allocation does not measure each body’s build-back complexity because it covers central project work. We will assess body-specific complexity through the normal fee variation process.
