Key performance indicators
- Each firm has a contractual obligation to deliver the Services in accordance with the Performance Indicators (KPIs) and to monitor and report to us on its performance.
- We introduced KPIs into the new contracts for 2023/24 audits onwards. We had to define the KPIs and target levels as part of our procurement documents in late 2021/22. Table 12 provides details of the KPIs for the 2023/24 audits.
- We decided it was appropriate to publicly report KPI performance at a summary level as the introduction of audit backstop dates will undoubtedly have impacted firms’ ability to achieve KPI targets. We subsequently updated aspects of the KPIs following the major changes caused by the introduction of the backstop dates.
Table 12: KPIs for 2023/24 audits (for all firms) excluding pension fund audits
| KPI | Definition | Targets (of audits) | Achievements (% of eligible audits) |
| KPI_01 | Draft audit plans produced by 30 April 2024 | 100%* | 70% |
| KPI_02 | 50% planned hours delivered by 31 July 2024 | 90%* | 60% |
| KPI_03 | 75% planned hours delivered by 31 August 2024 | 90%* | 58% |
| KPI_04 | 100% planned hours delivered by 31 December 2024 | 100%* | 86% |
| KPI_05 | Where an opinion is unable to be given by the backstop date for whatever reason, written communication with the audited body takes place | 100% | 98% |
| KPI_06** | Management of objections as per the Code of Audit Practice | 100% | 24%*** |
* Where 2022/23 audit opinion was given by the end of December
** Target completion date is 6 months after the date the objection was accepted and therefore differs
between each objection and to report to the body and objector on progress every 3 months
*** This value does not reflect the 2023/24 objections that have yet to reach the target completion date
- The KPI_06 achievement is very low against the target even acknowledging the complexity of some objections which makes it challenging to conclude them within six months. The significant audit backlog over many years and the firms’ subsequent focus and priority on meeting the backstop dates were key contributing factors.
- We have seen a significant shift in clearing objections following the statutory backstop dates, and we have increased our monitoring of this KPI which features in all contract monitoring meetings.
Other assurances
- We undertake due diligence checks to ensure the firms have the required assurances in place to underpin their delivery and have met the requirements of our contract. The following sections summarise our work.
Insurance
- We reviewed and confirmed that all firms continue to have satisfactory insurance or equivalent arrangements in place covering Public Liability, Employers Liability and Professional Indemnity.
Information Assurance
- We reviewed and confirmed that all firms continue to have satisfactory information governance arrangements in place including certification of Cyber Essentials, Cyber Essential Plus and/or ISO27001.
Economic and financial standing
- We assessed each firm’s audited accounts and confirmed these continue to meet the requirements of our contract.
Modern Slavery
- We reviewed and confirmed that all firms continue to have a published modern slavery statement available on their websites.
Complaints
- Complaints can be an indicator of poor-quality service. Under our complaints policy we can consider complaints that relate to maladministration by a firm, but we cannot consider complaints about the professional judgements and decisions made by auditors, or the process followed in relation to elector rights as these are matters for the courts. We have a protocol with the relevant regulators for dealing with such complaints.
- We have processed no formal complaints under our complaints policy in respect of the 2023/24 accounts, but we have processed and upheld a complaint about a firm in relation to the 2019/20 audit.