Regulation 17 Setting of fee for auditI1

England and Wales

(1)

F1Subject to paragraphs (2) and (2A), the fee for the audit of the accounts of an opted in authority must be set in accordance with the appropriate fee scale specified in accordance with regulation 16.

(2)

If it appears to an appointing person, on the basis of information supplied by the local auditor which it has appointed—

(a)

that the work involved in a particular audit was substantially more or less than that envisaged by the appropriate scale, or

(b)

any of the provisions mentioned in paragraph (3) apply,

the appointing person may charge a fee which is larger or smaller than that referred to in paragraph (1), as appropriate.

F2(2A)

If it appears to an appointing person—

(a)

that the work involved in the audit of the accounts of all opted in authorities was or is likely to be substantially—

(i)

more than envisaged by the appropriate scale, the appointing person may charge to all opted in authorities a fee which is larger than that referred to in paragraph (1);

(ii)

less than envisaged by the appropriate scale, the appointing person may charge to all opted in authorities a fee which is smaller than that referred to in paragraph (1);

(b)

that the work involved in the audit of the accounts of a group of opted in authorities was or is likely to be substantially—

(i)

more than envisaged by the appropriate scale, the appointing person may charge to all of that group of opted in authorities a fee which is larger than that referred to in paragraph (1);

(ii)

less than envisaged by the appropriate scale, the appointing person may charge to all of that group of opted in authorities a fee which is smaller than that referred to in paragraph (1).

(2B)

Before charging a larger or smaller fee under paragraph (2A), an appointing person must consult—

(a)

all opted in authorities to whom the appointing person proposes to charge a larger or smaller fee; and

(b)

all local auditors conducting the relevant audits of opted in authorities to whom the appointing person proposes to charge a larger or smaller fee.

(3)

The costs or expenses of the local auditor recoverable from an authority under any of the following provisions of the Act are recoverable as part of the fee for the audit of the accounts of the opted in authority to which the costs or expenses relate—

(a)

section 23(3) (offences relating to auditor’s right to documents and information);

(b)

section 26(3) (inspection of documents etc.);

(c)

section 27(7) (right to make objections at audit);

(d)

section 28(7) (declaration that item of account is unlawful);

(e)

section 31(6) (power of auditor to apply for judicial review);

(f)

paragraph 1(5) of Schedule 7 (public interest reports);

(g)

paragraph 2(4) of Schedule 7 (written recommendations); and

(h)

paragraph 3(5) of Schedule 8 (advisory notices).

(4)

The appointing person must give notice to the authority concerned of any larger or smaller fee, giving reasons.

Annotations

Textual amendments

F1: Words in reg. 17(1) substituted (16.2.2022) by The Local Audit (Appointing Person) (Amendment) Regulations 2022 (S.I. 2022/69), regs. 1(1), 2(4)(a) (with reg. 1(3))
F2: Reg. 17(2A)(2B) inserted (16.2.2022) by The Local Audit (Appointing Person) (Amendment) Regulations 2022 (S.I. 2022/69), regs. 1(1), 2(4)(b) (with reg. 1(3))

Commencement

I1: Reg. 17 in force at 10.2.2015 in accordance with, see reg. 1(1)