Club Management - September/October 2007 - (Page 30) Several of the major audit firms have reported that client fees will increase somewhere between 15 percent and 40 percent due to the new audit standards. the establishment earns, the more complex the audit, and the greater the audit fees. Club Membership. When asked to provide information on club membership, the respondent clubs indicated varying membership sizes. The majority (35 percent) stated that they have less than 400 primary memberships, followed by 400 to 600 members (26 percent), more than 900 members (21 percent), and 600 to 900 members (18 percent). Geographic Region. Out of the 273 survey participants that provided information on their establishment’s geographic location, the majority (35 percent) indicated that they are in the South Atlantic region. Twenty percent of respondents indicated they are in the Middle Atlantic Region and 12 percent of respondents reside in the East North Central and Pacific regions. Audit Information Results Type of Annual Review. Three hundred sixty-four survey participants provided information on the type of annual review performed on their financial statements. Eighty-three percent indicated that a formal audit is conducted on an annual basis, followed by 12 percent that receive either a review or compilation of their financial statements, and 1 percent indicated that an internal audit is conducted. Of those receiving an internal audit, many stated that the audit was conducted by a parent company or corporate chief financial officer. The two respondents who chose “other” explained that their financial statements are reviewed only for tax purposes. Accounting Firm. When analyzing the cost of an audit, it is important to determine the type of firm conducting the audit; therefore, survey participants were asked to indicate the type of firm providing their audit opinion. The bulk (48 percent) of the respondents specified that a local firm conducts their audit, followed by national firms (25 percent), regional firms (24 percent) and Big 4 (3 percent). The Big 4 auditing firms include Deloitte Touche Tohmatsu, PricewaterhouseCoopers, Ernst & Young and KPMG. Audit cost information was compared utilizing the four accounting firm types and no significant difference was indicated. Big 4 and national firms tended to be in the same price range followed by regional and then local firms. Type of Audit Opinion: Qualified vs. Unqualified. When asked whether their establishment received a qualified or unqualified audit opinion, more than 30 percent of respondents indicated they receive a qualified audit. A qualified audit opinion “suggests that the information provided was limited in scope and/or the company 30 • CLUB MANAGEMENT http://www.uspta.com/
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