I.2 Assessment of the auditor’s report on the financial statements - Club Licensing

I.2.1

In respect of the annual financial statements and interim financial statements, the licensor must perform the following minimum assessment procedures:

1. Assess whether the reporting perimeter is appropriate for club licensing purposes;

2. Assess the information submitted to form a basis for the licensing decision;

3. Read and consider the annual financial statements and interim financial statements and the auditor’s report thereon;

4. Address the consequences of any modifications to the auditor’s report (compared to the normal form of unqualified report) and/or deficiencies compared to the minimum disclosure and accounting requirements according to Annex I.2.2 below.

I.2.2

Having assessed the reporting perimeter and read the auditor’s report on the annual financial statements and interim financial statements, the licensor must assess these according to the items below:

1. If the reporting perimeter does not meet the requirements of Article 65, the licence must be refused;

2. If the auditor’s report has an unqualified opinion, without any modification, this provides a satisfactory basis for granting the licence;

3. If the auditor’s report has a disclaimer of opinion or an adverse opinion, the licence must be refused, unless a subsequent audit opinion without disclaimer of opinion or adverse opinion is provided (in relation to another set of financial statements for the same financial year that meet the minimum requirements) and the licensor is satisfied with the subsequent audit opinion;

4. If the auditor’s report has, in respect of going concern, an emphasis of matter, a key audit matter or a qualified ‘except for’ opinion, the licence must be refused, unless either:

   1. a subsequent audit opinion without going concern, an emphasis of matter, a key audit matters or qualification is provided, in relation to the same financial year; or

   2. additional documentary evidence demonstrating the licence applicant’s ability to continue as a going concern until at least the end of the licence season has been provided to, and assessed by, the licensor to its satisfaction. The additional documentary evidence must include, but is not necessarily limited to, the information described in Article 74.

5. If the auditor’s report has, in respect of a matter other than going concern, an emphasis of matter, a key audit matter or a qualified ‘except for’ opinion, then the licensor must consider the implications of the modification for club licensing purposes. The licence may be refused unless additional documentary evidence is provided and assessed to the satisfaction of the licensor. The additional evidence that may be requested by the licensor will be dependent on the reason for the modification to the audit report;

6. If the auditor’s report makes a reference to any situation defined in Article 64 the licence must be refused.

I.2.3

If the licence applicant provides supplementary information and/or restated financial statements, the licensor must additionally assess the auditor’s report on the agreed-upon procedures in respect of the supplementary information and/or restated financial statements. The licence may be refused if the auditor’s report is not to the satisfaction of the licensor and/or includes reference to errors and/or exceptions found.

I.2.4

The licensor must check that the licence applicant has published the financial information in accordance with Article 67.