PSAA appoints auditors to eligible public sector bodies that opt into its national scheme and sets a scale of fees for audit work.

The dynamic purchasing system is expected to be in place through to 2030 and will enable PSAA to tap into available audit capacity as and when the need arises. It is an online database of possible suppliers across the audit market and unlike the current system, new providers can be added at any time.

The public sector audit market was valued at £64m in 2017–18 including only costs for external audit and no additional services, according to the National Audit Office.

It will support PSAA’s efforts to encourage a more sustainable market as firms registered as a local auditor with the ICAEW are likely to have more frequent opportunities to enter the market or to expand their portfolios.