ICAEW’s new Technical Release
This new Technical Release sets out recommended procedures ATOL Reporting Accountants (ARAs) would be expected to use on ATOL engagements. The guidance includes the know-how to help ARAs to scope and perform their work to meet their professional responsibilities.
The release reflects the new ATOL Regulations, amended in 2018 to implement the EU’s Package Travel Directive (PTD). It has been developed with input from the CAA and is intended to promote consistency in approach. It replaces the previous release TECH 09/16 AAF.
The main changes relate to what ATOL holders are required to report under licensable revenue, and definitions of single and multi-contract packages.
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. ICAEW’s Quality Assurance team also provided feedback from their visits. This was incorporated into the development of the new Technical Release, including a new template for the letter of representation which was requested by many ARAs.
Updated CAA guidance
CAA Guidance (formerly known as Guidance Note 10) has been revised and re-issued to update Appendix A ‘Requirements for ATOL Reporting Accountants’ only.
The new guidance: Official Record Series 3, Appendix A – requirements for ATOL Reporting Accountants contains advice for ATOL Reporting Accountants who act for ATOL holders and applicants.
Changes include:
- amendments to the work procedures for an ARA;
- more guidance on what constitutes an ATOL sale;
- updating the referencing to ‘Appendix A’; and
- the correction of minor errors.
Reminder - Licensed Practice annual review requirements
A reminder that a licensed practice needs to review, at least once a year, how effectively it is complying with the ICAEW Licensed Practice Handbook and take action to deal with any issues found (Handbook Paragraph 3.12). The review should cover:
- the licensed practice’s ATOL whole firm procedures; and
- a review of a selection of client files annually.
The licensed practice should use an independent reviewer, at least once every three years, to perform a review of a sample of client files (Handbook para 5.07)
We have published a helpsheet providing a checklist suitable for performing cold file reviews of ATOL engagements. You may find this useful when conducting an annual compliance review in accordance with the ICAEW Licensed Practice Handbook.
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