Terms of appointment and further guidance from 1 April 2018

Appendix 2: Protocol for liaison between PSAA and firms of appointed auditors


1. This protocol is intended to cover all formal liaison with auditors and PSAA. It does not cover informal discussions between individuals which may be used to help PSAA staff to develop their thinking on particular issues or to determine what PSAA might consult on.

2. In conducting any consultation PSAA will follow the Government’s Code of Practice on Consultation.


3. PSAA will consult auditors:

  • before setting scales of fees; and
  • before amending the Terms of Appointment.

4. PSAA will, other than in exceptional circumstances, allow auditors a minimum period of four weeks on all consultations. In setting deadlines for responses, PSAA will, so far as possible, allow longer during ‘peak’ periods of work or over holiday periods.

5. When initiating consultation, PSAA will make clear:

  • on what issues in particular it is seeking auditors’ views (and the extent to which a particular issue is open for consultation or must be regarded as a “given”);
  • what level of response it is seeking;
  • who it suggests should respond;
  • when responses are required; and
  • to whom the response should be made.

6. Following each consultation, PSAA will:

  • communicate the outcomes of each consultation;
  • respond to firms who have identified an ‘issue of principle’ setting out how this issue of principle has been addressed, or otherwise, as a result of the consultation; and
  • for major or significant consultations, detail the main issues raised in the consultation and how these have been considered.

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