APB issues revised guidance on the audit of friendly societies
News types: Publications
Published: 26 July 2011
The Auditing Practices Board (APB) of the FRC today publishes a revision of Practice Note (PN) 24 “The Audit of Friendly Societies in the United Kingdom”. A consultation draft of the revised PN was issued in January 2011 for public comment. The revised guidance reflects:
- the provisions of the clarified ISAs (UK and Ireland) (which apply to the audit of financial statements of friendly societies for periods ending on or after 15 December 2010; and
- changes in the legislative and regulatory framework.
Enhanced guidance is included in the PN with respect to:
- Auditing accounting estimates.
- Materiality.
- Evaluation of misstatements identified during the audit.
“As Friendly Societies hold funds in excess of £16 billion on behalf of a membership of some 7.1 million, the revised Practice Note provides guidance for auditors of an important sector of the UK’s insurance industry.
The APB is aware that significant changes to the legal and regulatory environment governing insurers will be taking place over the next few years, including in particular, the implementation of Solvency II. The APB will be monitoring the effect of these developments on the guidance in the Practice Note.
The APB is grateful for the contribution made by the Insurance Committee of the Institute of Chartered Accountants in England & Wales in the course of the development of this Bulletin”.
Notes to Editors
- The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
- The APB is committed to leading the development of auditing practice in the United Kingdom and the Republic of Ireland so as to:
- establish high standards of auditing;
- meet the developing needs of users of financial information; and
- ensure public confidence in auditing.