Friendly Societies Act 1992

73 [F1 Auditor’s report]. U.K.

(1) The [F2 auditor] of a friendly society or of a registered branch shall make a [F3 written] report to the members on the annual accounts which are to be laid before the society or branch at the annual general meeting during [F2 his] tenure of office.

(2) The [F4 auditor] of a friendly society or registered branch shall, in preparing [F5 his] report, carry out such investigations as will enable [F6 him] to form an opinion as to—

(a) whether [F7 adequate] accounting records have been kept under section 68 above;

F8 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) whether the annual accounts are in agreement with the accounting records;

F9 ...

[F10 (2A) If the auditor is of the opinion that—

(a) adequate accounting records have not been kept under section 68, or

(b) the annual accounts are not in agreement with the accounting records,

the auditor must state that fact in his report.]

(3) If the [F11 auditor fails] to obtain all the information and explanations and the access to documents which, to the best of [F12 his] knowledge and belief, are necessary for the purposes of [F12 his] audit, [F13 he] shall state that fact in [F12 his] report.

F14 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F15 (4A) The auditor shall, in his report—

(a) state whether, in his opinion, based on the work undertaken in the course of the audit—

(i) the information given in the report of the committee of management for the financial year for which the annual accounts are prepared is consistent with those accounts,

(ii) that report has been prepared in accordance with this Act and the regulations made under it,

(b) state whether, in the light of the knowledge and understanding of the society or registered branch and its environment obtained in the course of the audit, the auditor has identified material misstatements in the report of the committee of management, and

(c) if applicable, give an indication of the nature of each of the misstatements referred to in paragraph (b).]

F16 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F17 (5A) The auditor’s report must include—

(a) the identity of the friendly society or registered branch whose annual accounts are the subject of the audit,

(b) a description of the annual accounts that are the subject of the audit (including the period covered by those accounts),

(c) a description of the financial reporting framework that has been applied in the preparation of those accounts, and

(d) a description of the scope of the audit identifying the auditing standards in accordance with which the audit was conducted.

(5B) The report must clearly state the opinion of the auditor as to whether the annual accounts—

(a) give a true and fair view—

(i) in the case of an individual balance sheet, of the state of affairs of the society or branch as at the end of the financial year,

(ii) in the case of an individual income and expenditure account, of the income and expenditure of the society or branch for the financial year, and

(iii) in the case of the group accounts of an incorporated friendly society, of the state of affairs as at the end of the financial year and of the income and expenditure for the financial year of the society and the subsidiary undertakings dealt with in the group accounts, so far as concerns members of the society,

(b) have been properly prepared in accordance with the relevant financial reporting framework, and

(c) have been prepared in accordance with the requirements of this Act (and where applicable, Article 4 of the IAS Regulation).

(5C) The auditor’s report must—

(a) be either unqualified or qualified,

(b) include a reference to any matters to which the auditor wishes to draw attention by way of emphasis without qualifying the report,

(c) include a statement on any material uncertainty relating to events or conditions that may cast significant doubt about the ability of the friendly society or registered branch to continue to adopt the going concern basis of accounting, and

(d) identify the auditor’s place of establishment.]

[F18 (6) Where more than one person is appointed as auditor, all the persons appointed must jointly make a report under this section, which must include a statement as to whether they all agree on—

(a) the matters contained in the report,

(b) the statements given under subsections (2A), (3) and (4A), and

(c) the indications given under subsection (4A).

(7) Where the persons do not all agree on all of those things, the report must—

(a) include the opinions of each person appointed, and

(b) give reasons for the disagreement.]

Textual Amendments

F1 Words in s. 73 heading substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(i)

F2 Word in s. 73(1) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(a)

F3 Word in s. 73(1) inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(a)

F4 Word in s. 73(2) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(b)(i)(aa)

F5 Word in s. 73(2) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(b)(i)(bb)

F6 Word in s. 73(2) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(b)(i)(cc)

F7 Word in s. 73(2)(a) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(b)(i)

F8 S. 73(2)(b) repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F9 Words in s. 73(2) omitted (with effect in accordance with reg. 1(5) of the amending S.I.) by virtue of The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(b)(ii)

F10 S. 73(2A) inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(c)

F11 Words in s. 73(3) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(c)(i)

F12 Word in s. 73(3) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(c)(ii)

F13 Word in s. 73(3) substituted (29.6.2008 with effect in accordance with art. 1(3) of the amending S.I.) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), art. 1(2), Sch. 2 para. 2(c)(iii)

F14 S. 73(4A) substituted for s. 73(4) (with effect in accordance with art. 1(2) of the amending S.I.) by The Friendly Societies Act 1992 (International Accounting Standards and Other Accounting Amendments) Order 2005 (S.I. 2005/2211), arts. 1(2), 5(2)

F15 S. 73(4A) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(d)

F16 S. 73(5A)-(5D) substituted for s. 73(5) (with effect in accordance with art. 1(2) of the amending S.I.) by The Friendly Societies Act 1992 (International Accounting Standards and Other Accounting Amendments) Order 2005 (S.I. 2005/2211), arts. 1(2), 5(3)

F17 S. 73(5A)-(5C) substituted for s. 73(5A)-(5D) (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(e)

F18 S. 73(6)(7) re-inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 5(f)

Commencement Information

I1 S. 73 wholly in force; s. 73 not in force at Royal Assent see s. 126(2); s. 73 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 73 in force for all remaining purposes at 1.1.1994 by S.I. 1993/2213, art. 2(1), Sch. 5