Auditors are required to complete an audit that complies with the NAO Code of Audit Practice, i.e. complies with all auditing standards. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 provides 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.
In 2017, audit services contracts were let on the basis that bids would meet all the expectations required to deliver a Code of Audit Practice audit at the point contracts were signed.
PSAA has a robust process for reviewing and approving fee variations involving consultation with the audited body, reviews of firms’ work programmes and audit files to validate any additional charge.