Executive Summary
PSAA has consulted on changes to fee variations arrangements, to introduce a new approach for national variations where changes in audit requirements relate to the conduct of all or most audits and where a standard cost can reasonably be estimated across groupings of bodies. The consultation also set out a proposed increase in the fee rates for additional work.
On the basis of the positive response to the consultation, PSAA has resolved to implement the proposed changes:
- a programme of research is under way to consider the likely impact on audit work and fees of some expected changes in audit requirements. We will consult opted-in bodies and other stakeholders on proposals where we identify changes for which a national approach would be appropriate;
- the new approach to national variations will apply for the first time in relation to audits of 2020/21 financial statements and value for money arrangements; and
- all variations – both national and local – arising in relation to audits of 2020/21 financial statements and value for money arrangements will be calculated in accordance with a new rate card reflecting increased hourly rates for different categories of audit staff.