Clubs - purpose and scope
This product provides almost everything that an auditor or independent accountant will need when undertaking engagements with entities that are regulated under the Co-operative and Community Benefit Societies Act 2014 (CCBSA 2014) and the Friendly Societies Act 1974 (FSA 1974). Guidance includes:
- details of when a club is able to take advantage of an audit opt-out and guidance on whether they are required to obtain an independent accountant’s report or if they do not need any type of assurance report;
- example audit and independent accountant’s reports for use in any clubs assignment;
- model accounts for a club reporting under CCBSA 2014; and
- disclosure checklists for a club engagement.
This guide does not provide guidance on clubs registered under the Friendly Societies Act 1992 or Credit Unions registered under the Credit Union Act 1979; nor does it cover Housing Associations even if they are registered under the CCBSA 2014. There are two practice notes issued by the FRC, which give some guidance in these areas:
- Practice Note 14 (PN 14): The audit of housing associations in the United Kingdom; and
- Practice Note 20 (PN 20) (Revised): The audit of insurers in the United Kingdom. This includes content from the superseded PN 24: The audit of Friendly Societies in the United Kingdom.
Further guidance on the wider regulatory environment for clubs and associations is available in the Clubs and Associations Tax, Audit and Accounting Guide, which gives a comprehensive guide to all aspects of dealing with clubs and societies and will give the auditor, or independent accountant, a good insight into considerations for clubs.
This guide also does not consider clubs or societies that are part of a wider group structure. If this is the case, further guidance is available in Audit Guidance and Methodology.