Annual Report 2018
Public Sector Audit Appointments Limited (PSAA) is an independent company limited by guarantee incorporated by the Local Government Association in August 2014.
The Secretary of State for Communities and Local Government delegated a number of statutory functions (from the Audit Commission Act 1998) to PSAA on a transitional basis by way of a letter of delegation issued under powers contained in the Local Audit and Accountability Act 2014.
As a consequence of these delegations, for 2017/18 the company will continue to be responsible under transitional arrangements for appointing auditors to local government and police bodies, for setting audit fees and for making arrangements for certification of housing benefit subsidy claims.
Looking beyond 2017/18, the Secretary of State has specified PSAA as an appointing person for principal local government bodies from 2018/19, under the provisions of the Local Audit and Accountability Act 2014 and the Local Audit (Appointing Person) Regulations 2015.
Responses to QRP findings and next year's QRP
- All the audit firms have made arrangements to report the QRP findings to a suitable management group. Action plans are in place to address both organisation-wide and audit team issues. We will follow up significant recommendations as part of next year’s QRP.
- We intend to continue with our regulatory compliance reports for all suppliers. Where required, we will make visits to firms.
- Our programme for next year will continue to include reviews of audit work by the FRC; and reliance on the results of firms’ QMRs.
- Our aim is to work with firms to ensure that our regulatory requirements continue to be met and that the risks of audit failure remain low.
- Quality assurance arrangements for limited assurance work for 2017/18 engagements are the responsibility of Smaller Authorities’ Audit Appointments Ltd (SAAA).