Revisiting Audits or Review of Accounts

I have always regarded legislation such as the Industrial and Provident Societies Act 1908, Agricultural and Pastoral Societies Act 1908, Building Societies Act 1965, Friendly Societies and Credit Unions Act 1982, and Racing Act 2003, and Acts specifically dealing with professions as minefields which are not readily covered in material intended for those running and advising more “mainstream” community societies and charitable trusts.  Indeed, to do so would tend to confuse the primary readership.  Therefore, this series of articles has tended to shy away from more esoteric societal legislation. However, a reader kindly drew my attention to statutory issues relating to the audit of the industrial and provident societies, which prompts me to revisit the subject of the auditing or reviews of the accounts of not-for-profit organisations discussed in my 28 January 2011 article. Industrial and Provident Societies Act 1908 This Act contains conflicting messages: Section 7 provides that “With respect to the rules of societies the following provisions shall have effect: (a) The rules of every society sent for registry shall contain provisions in respect of the several matters mentioned in Schedule 2 hereto,” and item 7 of Schedule 2 states “Provision for the audit of accounts.”  Read with section 19, it would appear to me that the rules could provide for no audit.  Section 19 provides for the “Appointment of auditors”:  (1)    Any registered society may from time to time appoint an auditor or auditors of the society. (1A) Whenever any registered society has no auditor the Registrar may, on the application of any member of the society, appoint an auditor of the society. The remuneration of an...