GUIDANCE ON THE AUDIT of friendly societies has been reviewed by the Financial Reporting Council's Auditing Practices Board.

Following a consultation earlier this year, Practice Note 24 reflects legislative and regulatory changes, as well provisions of the clarified International Standards on Auditing. Further guidance is offered on issues like materiality and the auditing of accounting estimates.

Friendly societies provide alternative financial services including pensions, savings and insurance, with UK funds collectively holding more than £16bn on behalf of 7.1 million individuals.

Chairman Richard Fleck (pictured) said: "The APB is aware that significant changes to the legal and regulatory environment governing insurers will be taking place over the next few years, including in particular, the implementation of Solvency II. The APB will be monitoring the effect of these developments on the guidance in the practice note."