Travel Agent Trust Account
Under the national scheme for the Uniform Regulation of Travel Agents, all participating jurisdictions have enacted uniform rules through state based legislation, including a requirement that travel agents be licensed and participate in the Travel Compensation Fund (TCF). In Western Australia (WA), travel agents are regulated by the Travel Agents Act 1985 (the Act) and the Travel Agents Regulations 1986.
The TCF provides prudential oversight of licensed travel agents upon application for a licence and participation in the TCF together with annual assessments of the financial viability of travel agents before their licences are renewed. The TCF requires participants to submit audited financial accounts annually.
For those who voluntarily registered with AFTA Travel Accreditation Scheme (ATAS), copies of audited financial reports have to be submitted to ATAS annually.
The audit process starts with obtaining a copy of your trail balance – we then select balances and transactions to test based on the size of the balances and the risk of misstatement involved, as well as to test that your control processes work appropriately. We also do some analytical procedures to ensure it all makes sense, read your minutes of meetings and other audit procedures as required by the audit standards.
Lastly, the financial statements are signed by the licensee and we issue our audit report.
At AMW we perform audits of both travel agency financial statements, and for those who still maintain trust accounts, the audits of the trust accounts.
We have over 40 years of experience in auditing travel agencies and travel agent trust accounts.