Guide to auditing academies in 2013

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Audit firms with academies as their clients will be turning their attention to the 2013 audits and undoubtedly digesting the content of the latest Academies: Accounts Direction 2013 (AAD 2013) which was issued by the Education Funding Agency (EFA) in May 2013, explains Steve Collings.

This article will examine some of the main issues required for reporting on regularity, propriety and compliance.

The issue of ‘regularity’ was introduced in the 2011/12 audits and replaced the former ‘use of funds’ opinion. It also enabled the EFA to remove the requirement for academies producing 2011/12 financial statements from completing a financial management and governance evaluation. Aspects concerning regularity are contained in the AAD 2013 in part 10 and this part outlines the regularity reporting requirements relevant to the August 2013 audit. The guidance is twofold: One part is directed specifically at the academy’s accounting officer (which in the vast majority of cases will be the principal) and the other part is aimed at the regularity auditor.

The word ‘auditor’ in the context of regularity and propriety is somewhat a misnomer - however this article will refer to ‘auditor’ for consistency with the AAD 2013. This is because the regularity requirement is that of a limited assurance report and therefore the academy auditor is not...

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  • Addressing regularity and propriety
  • Statement on regularity, propriety and compliance
  • Illustrative statement 
  • Auditor’s responsibilities
  • Engagement terms
  • Other issues relevant to 2013 audit 
  • 2011/12 regularity findings
  • Conclusion

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About Steven Collings


Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.


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