Does a minimum fee discourage or encourage innovation in audit approach – should there be a maximum fee, does one size fit all for an audit?

A feature of the PSAA system is that the audit fees are separate to the firms’ remuneration and so the minimum fee is about ensuring a fair contribution to the total pot needed to pay all auditors. Scale fees vary in line with the additional work needed. The changes we sought and that have been agreed to the Regulations relating to additional fees and the fee setting timescale, will help to make the scale fees more accurate.