The Auditing Practices Board (APB) has published a consultation draft of Practice Note (PN) 27 ‘The audit of credit unions in the United Kingdom’. The consultation period ends on 25 September 2008.

The draft PN 27 has been prepared to:

• provide guidance to auditors on the application of ISAs (UK and Ireland) to the audit of the financial statements of credit unions in the United Kingdom; and
• provide guidance to auditors on the various legal and regulatory requirements relating to credit unions, both in Great Britain and in Northern Ireland.
  The draft PN 27 is consistent with the recently issued consultation draft of PN 27(I): ‘The audit of credit unions in the Republic of Ireland’, supplemented, as appropriate, with guidance to take account of relevant regulatory requirements both in Great Britain and in Northern Ireland.

Richard Fleck, APB Chairman, said:

“The draft Practice Note provides useful guidance on the legislative and regulatory environment relating to the audit of credit unions. The APB is grateful to the Financial Services Authority, and the Department of Enterprise, Trade and Investment in Northern Ireland, for their support in developing this consultation draft”.

Copies of the consultation draft may be downloaded from the Publications (Exposure Drafts) section of this website.

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. It’s functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
2. 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 the auditing process.
3. The APB issues Practice Notes to assist auditors in applying auditing standards of general application to particular circumstances and industries. Practice Notes are persuasive rather than prescriptive. However, they are indicative of good practice even though they may be developed without the full process of consultation and exposure used for auditing standards.
4. The draft PN has been prepared with advice and assistance from staff of the FSA and DETI.
5. For further information please contact Jon Grant, APB Executive Director, on 020 7492 2410.