4. Reporting on audit delivery
4.1 This section sets out the reporting required by Firms on audit delivery. It covers:
- Audit planning.
- Audit report and opinion.
- Auditor’s annual report.
- Reporting audit delivery progress to PSAA.
4.2 The exercise of specific powers and duties of local government auditors is covered in Section 5.
Audit planning
4.3 The Code of Audit Practice specifies a requirement from 2020/21 for timely reporting including producing audit reports in time, insofar as the auditor can do so under the auditing standards, to allow local bodies to comply with the requirements placed on them to publish their audited financial statements.
4.4 Auditors are expected to plan and deliver the audit in line with the publication deadlines (as amended from time to time) in the Accounts and Audit Regulations 2015, provided this is possible within the requirements of the auditing standards and guidance issued by the NAO.
4.5 Firms must include the following in their audit planning report:
- A timetable for completing the audit.
- The scale audit fee set by PSAA.
- Any anticipated variations to the scale fee, with supporting rationale.
- An outline of the proposed audit work, including any planned value for money arrangements work (VFM).
4.6 Where, in the auditor’s view, it would not be possible to issue an audit report in compliance with the auditing standards and the guidance issued by the NAO by the statutory publishing date, the audited body must be consulted on an alternative target date.
4.7 Where an alternative target date is set for the issuing of the audit report, the auditor should include a timetable for completing the audit in the audit planning report in accordance with that target date insofar as the auditor can do so under the auditing standards and the Code. PSAA will review audit planning documents for contract monitoring purposes.
Audit report and opinion
4.8 The audit opinion including value for money arrangements commentary where required, audit certificate and Auditor’s Annual Report must be issued in accordance with the Code.
4.9 Auditors must notify PSAA when they issue a non-standard audit opinion through the Opinion Tracker but PSAA does not routinely require a copy of a non-standard audit report.
4.10 Since 2020, the Code requires auditors to make recommendations where significant weaknesses in value for money arrangements are identified. The recommendations must be raised promptly with the body during the audit and be referred to in the Auditor’s Annual Report.
4.11 These requirements may be varied through Auditor Guidance Notes.
4.12 Auditors must inform PSAA via the Opinion Tracker when they report significant weaknesses in value for money arrangements, whether through issuing a standalone exception report, inclusion in the AAR or within the audit opinion.
Auditor’s annual report
4.13 From the 2024/25 audits, the Code requires that the auditor should issue a draft Auditor’s Annual Report by 30 November.
Reporting audit delivery progress to PSAA
4.14 Firms must provide information about their progress to deliver audits (including the pension fund where applicable) to PSAA through the “Opinion Tracker”. This covers information such as:
- Forecast of the type of audit opinion to be issued by the statutory date.
- When the opinion was issued.
- Whether a non-standard opinion was issued and/or any additional disclosures were made.
- If any significant weaknesses in value for money arrangements were identified.
- The date the Auditor’s Annual Report was issued.
- The date the Audit Certificate was issued.
4.15 To provide information requirements of local audit system stakeholders PSAA may from time to time have additional or amended information requirements.
4.16 Firms must also monitor and provide information about their performance against contractual performance indicators via the “KPI Tracker”. The contract enables PSAA to amend the performance indicators from time to time under certain conditions including permitting only 1 change per year giving at least 3 months’ notice.
4.17 Clause 5 of the contract requires the Firm to provide other information about the performance of the services as PSAA may reasonably require within 10 working days of its request.
4.18 Where PSAA requires additional information, it will aim to do so thoughtfully to minimise the burden on Firms. It will plan and consult on requests where possible and explain any ad hoc or significantly altered requests.
4.19 Firms are encouraged to raise concerns early if requests seem unreasonable or deadlines are problematic. The Firm’s Contact Partner (the key contact for the contract) is responsible for ensuring the quality and punctuality of submitted information.