PSAA has contracted with firms which have a proven track record in undertaking public audit work. In accordance with the Local Audit and Accountability Act 2014, firms must be registered with one of the chartered accountancy institutes acting in the capacity of a Recognised Supervisory Body (RSB). The quality of the firms’ work will be subject to scrutiny by both the RSB and the Financial Reporting Council (FRC).
PSAA will ensure that firms maintain the appropriate registration and will liaise closely with RSBs and the FRC to ensure that any concerns are detected at an early stage and addressed effectively in the new regime. PSAA will take a close interest in feedback from opted-in bodies and in the rigour and effectiveness of firms’ own quality assurance arrangements, recognising that these represent some of the earliest and most important safety nets for identifying and remedying any problems. We will continue to liaise with the NAO to help ensure that guidance to auditors is updated when necessary.
We are working on developing further our approach to audit quality and contract management from 2018/19.