APB Publishes New Rules on Audit of Charities
APB or the Auditing Practices Board has introduced new rules on how the audit of charities should be conducted.
APB has published a draft for revision on its guidance on the auditing of charities. The exposure draft has been created keeping in mind the different set of requirement charities have when compared to normal business firms.
The proposed revision draft has been updated in the light of the clarified ISA’s or the International Standards on Accounting.
The consultation on the Practice Note 11, which is known as The Audit of Charities in the UK, will end on January 21, 2011.
Richard Fleck, who is Chairman of the APB and a Director of the Financial Reporting Council, said in a statement today that the Practice Note was last issued on December 2008. He also said that the Note had been updated and the primary reason for it was because it was important to reflect the introduction of the clarified ISA’s of Ireland and UK which had become effective “periods ending on or after 15 December 2010”.
Fleck also said that the Northern Irish legislation had enacted the law on this issue recently.
A different set of rules for the auditing of charities becomes important as charities are not-for-profit organizations and their audit needs to be done differently than the method used for profit businesses. The new rules will be applicable on all audit firms.
Comments by the public on these changes done by the APB are welcome. Also comments on any other aspect of the guidance are welcome by the board as well. Interested stakeholders and audit practitioners are invited to comment on the new proposed draft. APB’s official website has made the exposure draft available for all to see.