Our audit isn’t even starting until after the deadline for publishing the audited accounts – surely there must be scope for a penalty payment in this instance?

This is a result of the current problems, including the resource shortage and backlog, complicated by the impact of Covid which essentially has slowed the whole process down.

The FRC’s Ethical Standard precludes contracts that contain fees that vary according to a pre-determined measure (for example specifying a date by which an audit opinion must be given).

We robustly scrutinise firms’ proposed fee variations for additional work in line with our published process. This includes discussions with individual authorities before making determinations.