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Approach to audit quality monitoring
- PSAA has a duty under the Regulation 7(b) to design and implement appropriate systems to:
- oversee issues of independence; and
- monitor compliance against contractual obligations
- Our approach is grounded in the International Auditing and Assurance Standards Board (IAASB)’s Framework for Audit Quality. This is widely regarded as a definitive statement on overall audit quality. We have taken the attributes the IAASB expects to be present in a quality audit and distilled them into three tests, which we use to consider the quality of audits and auditors under our contracts:
- adherence to professional standards and guidance;
- compliance with contractual requirements; and
- effective relationship management.
- This report covers the audits of years up to 2022/23 encompassing the passing of the first backstop date. It covers our supplier firms’ compliance with our contractual requirements and provides limited information on adherence to professional standards guidance given the regulators’ suspension of routine inspections. We are unable to report on effective relationship management due to our decision to suspend our client surveys because of the volume of delayed audits.
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