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ICAEW Release Audit 2/02 - Reporting to ABTA

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24th Jul 2002
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Solomon Hare provides a digest of the new arrangements for reporting to the Association of British Travel Agents, drawn from ICAEW Technical Release Audit 2/02. You can download this Solomon Hare circular as a Word document (112K).

1 INTRODUCTION
In September 2001 the ICAEW's Audit & Assurance Faculty ('the Faculty') issued Technical Release Audit 1/01 'Reporting to third parties'. At that time the Faculty indicated it would endeavour to agree with certain third parties who required reports from accountants the terms of reference and wording of reports that would be standard for particular assignments. Technical Release Audit 2/02 ('Audit 2/02') is the first agreement to result from this process.
The Association of British Travel Agents Limited ('ABTA') has agreed a new reporting regime or 'package' for special reports provided by accountants relating to ABTA members.

2 THE REPORTING PACKAGE
The package comprises three elements:

  • Model tripartite agreement;
  • Guidance notes for reporting accountants;
  • Reports/confirmations to ABTA.
  • Model tripartite agreement
    Appendix 1 of Audit 2/02 contains this agreement. ABTA has indicated that it will accept an engagement letter following the model. This does not apply to the Audit 001 series of forms. Audit 2/02 recommends that accountants should not sign these reports 'since it is unlikely that work of sufficient depth and breadth to support a signed report will be possible'. Once the agreement is in place it should not need to be updated and should apply to all reports made. The agreement makes it clear that it is the ABTA member's responsibility to produce the financial information, the accountant reports on the information.

    Guidance notes for reporting accountants
    Appendix 2 of Audit 2/02 contains the guidance notes. These explain the purpose and context of each return together with what ABTA is seeking in requesting the report.

    Reports/confirmations to ABTA
    Standard forms are used to provide the reports to ABTA. They can be accessed from ABTA's website on www.abtamembers.org/accforms.

    3 OTHER MATTERS
    When providing reports to ABTA reference should be made to Audit 2/02 and the arrangements it sets out should be followed. A copy of Audit 2/02 can be obtained from the Audit & Assurance Faculty website www.icaew.co.uk/auditassfac

    This Solomon Hare circular provides an overview of the topic. Therefore no responsibility is accepted for any loss arising as a result of any person relying on this summary. Specific advice should be sought before proceeding with any proposed action. For more details of the firm's technical services and seminars, visit the Solomon Hare website.

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