ICAEW's Audit and Assurance Faculty has published Technical Release 02/20 AAF ATOL Reporting Accountants - Reporting to the Civil Aviation Authority, which replaces TECH 09/16 AAF.
ATOL protection acts as a crucial safeguard for UK holidaymakers booking package holidays, helping to prevent consumers being stranded abroad or from losing money in the event that their travel provider becomes insolvent. Travel providers offering these holidays must hold an ATOL licence, which are provided for no more than one year.
In order for ATOL holders to renew their ATOL licence, they must submit financial and non-financial information to the Civil Aviation Authority (CAA) and engage an ATOL Reporting Accountant (ARA) to report on certain aspects of this information. An ARA is a member of an ATOL Reporting Accountant Scheme and ICAEW’s Licensed Practice Scheme has been approved by the CAA for this purpose.
This Technical Release sets out good practice guidance for ARAs on how to perform these engagements. The guidance includes the know-how to help ARAs to scope and perform their work to meet their professional responsibilities. The guidance includes standard terms of engagement, suggested work procedures for reporting on licensable revenue and CAA agreed upon procedures for other types of reporting.
The Technical Release has been developed with input from the CAA and is intended to help promote consistency in approach. This guidance reflects changes to the ATOL regulations in 2018. The main changes relate to what ATOL holders are required to report under licensable revenue, and definitions of single and multi-contract packages.
The CAA have also released an updated Appendix A to Official Record Series 3 in February 2020. This amends the assurance opinion on licensable revenue to use the wording, ‘prepared in all material respects’ and also includes the addition of CAA procedures for Flight-Only Ticket Fully Paid (Exemption 02/2018). TECH 02/20 AAF reflects these changes and provides further guidance.
TECH 02/20 AAF is available to ICAEW members, Audit and Assurance Faculty members and Faculties Online subscribers, and will be provided to those registered with ICAEW’s Licensed Practice Scheme.
If you do not have access through the above means, but would like a copy, the Technical Release is available for purchase here. If you’d like full access to this and other faculty resources, please join our growing community of audit professionals here.