2023/24 fee impact of additional audit requirements
This section of the briefing sets out the expected fee impact of additional work on ISA (UK) 315 (risks of material misstatement) and the related impact of ISA (UK) 240 (fraud) for 2023/24 audits. The additional fees are not included in 2023/24 scale fees, but we are consulting on including them in the 2024/25 fee scale.
We set the 2023/24 fee scale in November 2023, as required under local audit regulations. This statutory deadline and the volume of delayed opinions meant we did not have information on completed audit work for ISA (UK) 315 before we set the fee scale. We explained this in the published 2023/24 fee scale and we also wrote to opted-in bodies.
Appendix 1 provides information on factors that may affect the level of additional fee required at an individual body for a range of audit requirements and the actions opted-in bodies can take to mitigate the amount of additional work needed.
ISA (UK) 315 and related work on ISA 240
We have determined the proposed fees required for the additional work on revised ISA (UK) 315 (and linked work on ISA (UK) 240) for 2024/25 audits, as set out in our consultation on the 2024/25 fee scale. These proposed fees also provide a guideline for fee variation discussions for 2023/24 audits. The proposed fees do not reflect any additional work needed in the initial year.
We are proposing standard fees for 2024/25 for groups of bodies:
Additional standard fees to be consolidated for work on ISAs (UK) 315 and 240
| Body type | Standard fee |
|---|---|
| Metropolitan district council, London borough, unitary authority, county council | £15,690 |
| District council | £9,410 |
| Police and Crime Commissioner | £4,710 |
| Chief Constable | £4,710 |
| Fire authority | £7,058 |
| Pension fund audit | £7,840 |
The proposed standard fees are based on the extra work required, approved fee variations for the first year of application (2022/23), and discussions with firms and other audit providers. The standard fees are equivalent to an average increase of 5% in total 2024/25 scale fees for all opted-in bodies.
In a small number of exceptional cases where there are significant elevated risks, we are proposing higher additional fees based on the estimated additional work needed. We will review these cases once 2024/25 audit work has been completed and adjust where needed in the next fee scale.
We have proposed the additional fees for 2024/25 on the basis that we will only consider subsequent requests from auditors for further fees for this category of work in exceptional cases.