What is licensed work?
There are some non-statutory engagements that require a registered auditor to do the work despite this not being required by law.
These non-statutory engagements arise from:
- constitutional requirements: the audit of some unincorporated charities, clubs or voluntary organisations require their auditor to be eligible to act as a registered auditor and the requirement is written into the entity's constitution; and
- professional bodies: certain professional bodies require their members to obtain an accountants’ report prepared by a registered auditor.
The ICAEW Licensed Practice scheme enables licensed practices to fulfil these non-statutory engagements in cases where the constitutional requirements or professional body allows them to.
Currently, the only category of licensed work relates to ATOL Returns to the Civil Aviation Authority (CAA). If you wish to act as an ATOL Reporting Accountant for an ATOL holder, your firm must become an ICAEW Licensed Practice.
What is a licensed practice?
A licensed practice is a firm that ICAEW has registered to undertake work performed in accordance with the relevant category of the ICAEW Licensed Practice Handbook.
Currently, the only category of licensed work is ATOL Returns to CAA. If you wish to act as an ATOL Reporting Accountant for an ATOL holder, your firm must become a member of an ATOL Reporting Accountant scheme (ARA). CAA has approved ICAEW’s Licensed Practice scheme as an ARA.
Categories of licensed work
ATOL Reporting Accountants scheme
CAA has introduced the ATOL Reporting Accountants scheme to provide a designated status for ATOL Reporting Accountants.
It aims to ensure all ATOL Reporting Accountants under the ARA scheme have:
- sufficient knowledge and experience to perform the work to the required standard; and
- to provide training and support to firms that undertake this work.
The introduction of this scheme is to help to mitigate the risk that licences could be issued on the basis of incorrect information which could potentially expose consumers to an unacceptable risk or detriment. It will also ensure that correct amounts of APC are paid.
Under the ARA, CAA can approve a professional body which in turn can register and designate its members to be ATOL Reporting Accountants. ICAEW has been approved to do this through its Licensed Practice scheme.