Proposed fee variation for ISA 315 from 2023/24

The updated ISA 315 applies to all audited bodies from 2022/23 audits onwards, however the impact for each body type is expected to be variable. The significant changes in ISA 315 result in additional audit requirements that auditors must deliver to meet the Code of Audit Practice. When we published the 2023/24 scale fees in November 2023, we explained that we had been unable to consolidate the fee requirements of the updated ISA 315 into the scale fees, as we did not yet have sufficient information to do so.

Our contracted audit firms are entitled to submit proposals to us for additional fees, and we review all of them in accordance with the Local Audit (Appointing Person) Regulations 2015, following the process that is set out on our website – Fee Variations Overview, including consultation with the body where appropriate. Only when we have determined the fee does it become payable.

We undertake and publish fees research every year as part of our fee consultation process. This is available on our website: Additional information for 2022/23 audit fees. Our 2024 external fees research will be looking at the audit firms’ proposed fee variations for ISA 315, the extent of the additional work it requires in practice, and the potential for including the recurring element into future scale fees. Part of this consideration will be reviewing 2022/23 data.