Revised Guidance for Credit Unions in UK
The Auditing Practices Board (APB) of the FRC has issued a revision of Practice Note 27 “The audit of credit unions in the United Kingdom”.
The revision was released following an exposure draft of the revised Practice Note that was issued in October 2010 for public comment.
“This Practice Note provides guidance for the audits of credit unions in the UK, many of which are undertaken by smaller audit firms. The APB hopes that auditors of credit unions will find the revised and clarified guidance helpful in carrying out their work,” Richard Fleck, APB Chairman, said in a statement.
With the revised Practice Note, auditors are guided in applying the requirements of the International Standards on Auditing (ISAs) (UK and Ireland) that apply to audits of financial statements for periods ending on or after December 15, 2010.
The revision intends to assist the auditors of credit unions in reporting on matters specified by the regulators, and guidance is also given on the auditors’ right and duty to report to the regulators.
For credit unions in Great Britain the regulator is the Financial Services Authority (FSA) and in Northern Ireland it is the Department of Enterprise, Trade and Investment (DETI).
“The Practice Note sets out the special considerations relating to the audit of credit unions which arise from individual ISAs (UK and Ireland) listed in the contents. It is not the intention of the Practice Note to provide step-by-step guidance on the audit of credit unions, so where no special considerations arise from a particular ISA (UK and Ireland), no material is included,” the APB said.
THe APB clarified that the “Practice Note does not constitute general guidance given by the FSA or Industry Guidance.”
“It is not an exhaustive list of all the obligations that credit unions and their auditors may have under legislation and the FSA Handbook.”
In preparing the Practice Note, the APB has tapped the advice and assistance of the FSA (in so far as the obligations of credit unions and their auditors under the FSA Handbook are concerned) as well as the staff of DETI.
The revised Practice Note is based on the legislation and regulations which are in effect since April 1, 2011.