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The consultation period ends on 10 July 2008.

The current version of PN 11 was issued in 2002 and has since been supplemented by Bulletin 2005/1: Audit risk and fraud – supplementary guidance for auditors of charities.

The update to PN 11 reflects the replacement of Statements of Auditing Standards by ISAs (UK and Ireland) and changes to the Charities Act 1993 (which apply to charities in England and Wales) as a result of the implementation of the Charities Act 2006 on 1 April 2008.

It also takes in changes to the legal and regulatory arrangements for charities in Scotland, including the establishment of the Office of the Scottish Charity Regulator (OSCR) which apply to accounting periods commencing on or after 1 April 2006 and changes to the guidance on the Charity Commission’s interpretation of ‘material significance’ in the context of whistle-blowing responsibilities.

Changes to the legal and regulatory arrangements for charities in Northern Ireland have been proposed but, as these are not yet in a sufficiently final form, they have not been referred to in the consultation draft.

If new legislation is approved before PN 11 is finalised, reference will be made to it.

Richard Fleck, APB chairman, said that there had been a number of significant changes in law and regulation relating to charities since PN 11 was issued in 2002, and these are reflected in this consultation draft.

In particular, illustrative auditor’s reports based on the new legislation are included in an Appendix, and guidance is provided on the new regulatory arrangements in Scotland.

“The APB welcomes comments on the draft from auditors and others with an interest in charities,” Fleck concluded.

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Related links 

• Auditing Practices Board