We recognise the importance of councillors and Audit Committees having clear information about the scope and cost of the external audit.
PSAA consults bodies and other stakeholders on the proposed fee scale each year. Each body is notified of its proposed scale fee and any body-specific adjustment, and can provide relevant evidence or raise concerns before the final fee scale is approved.
At local level, the external auditor should explain the planned scope of the audit, the audit risks identified and the proposed fee to those charged with governance, normally through the audit planning report. Any significant changes to the work or proposed additional fees should also be explained clearly and discussed with the body.
For fee variations, PSAA considers the evidence submitted by the auditor and consults the body before determining the fee. This provides the body with an opportunity to comment on the reasons for the additional work and the amount proposed.
Audit Committees can support this process by seeking early and clear information from the auditor about the expected fee, asking for explanations of material changes and ensuring that proposed additional fees are reported transparently through the appropriate governance arrangements.