A club (bar) that I represent had an audit last year as per their 4 year rule book rule. Other than the club rules there are no statutory audit requirements.
The AGM was taken over last year by a disgruntled ex-employee who brought a posse and voted for another audit with >10% vote, knowing it would cost us £5k. We offerred them an independent exam but this was voted down. I can genuintly say that the vote for the audit was in no way a response to a poor committee or financial mismanagment in any way
The club has kept running lately on meagre reserves, but after covid-19, the club cannot afford another £5k audit.
Is there any way we can get out of the audit? I know there is some new legislation (Corporate Insolvency and Governance Act) brought in for Covid, but I have no experience in audit and not much knowledge of the legislation. We would be happy to go back to the members with another vote, if allowed.
If the committee choose to appoint an independent examiner, instead of a registered auditor. What would be the consequences for not being compliant?
Thank you in advance.
Any help would be greatly appreciated and might just keep us going through Covid and beyond.
All the best