The local audit regulations require PSAA to specify the fee scale before 1 December of the financial year to which the audit fees relate. When we consult on and set the fee scale, we aim to update fees to reflect changes in audit requirements. These have changed significantly in recent years due to increased regulatory challenge on audit quality, updated auditing and financial reporting standards, and the move to a VFM arrangements commentary.
If a change in audit requirements is substantial and we can reliably estimate the additional fees, we will incorporate them into the fee scale as soon as we can. If we need more information, we use the fee variations process in the interim to assess the ongoing additional work and fees needed. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 enables us to vary fees up or down, where substantially more or less work is needed to complete a Code compliant audit.