How will the appointing person scheme deal with an authority that is dissatisfied with its auditor and wants a change (e.g. because of quality, relationships, or a conflict of interest)?


As with the current arrangements, where an authority is dissatisfied with its auditor, concerns should be raised in the first instance with the firm’s Engagement Lead and subsequently with the firm’s PSAA Contact Partner (as indicated on communications between the firm and the authority).

If the authority is not satisfied with the response of the firm, then the matter should be raised with PSAA.

As appointing person, PSAA appoints a firm as auditor to an authority. The firm is responsible for nominating an individual to act as the Engagement Leader on the audit of an authority.

PSAA will consider changing an auditor appointment in extremis if an authority is dissatisfied, but would expect the authority and the firm to have exhausted all avenues for resolution before doing so. Maintaining the independence of the auditor is an important part of this consideration.

PSAA will consider changing an auditor appointment during a five year compulsory appointing period if a conflict of interest involving the existing audit firm is identified, or because of the emergence of new joint working arrangements.

The appointing person scheme has the flexibility to provide an audit alternative if required in these cases.

PSAA will be monitoring the quality of audit services provided as part of the contractual terms of appointment agreed with the firms.