At the beginning of October we announced the results of Public Sector Audit Appointments' (PSAA) latest procurement with mixed emotions including both relief and concern.

Relief, because we had managed, against considerable odds, to secure sufficient audit capacity to appoint auditors to all relevant local bodies for the next five-year term. Concern, because audit fees will need to increase substantially to reflect the higher prices bid by firms. We estimate an increase in fees of the order of 150% in 12 months' time which for many bodies will equate to a painful six-figure budget pressure.