SOLE TRADERS & PARTNERSHIPS
1 Responsibilities of accountants
1.1 Based on the accounting records maintained by you, or on your behalf, together with the information and explanations given to us by you, we shall compile draft accounts for your approval. We shall then issue signed annual financial statements and it is our practice to include an Accountants Report. Unless otherwise agreed in writing we shall plan our work on the basis that no report is required by statute or regulation for the year.
1.2 Our work as accountants will not include an audit (as regulated by auditing standards) of the financial statements. Consequently our work will not provide any assurance that the accounting records or the financial statements are free from material misstatement whether caused by fraud, other irregularity or error.
1.3 Our Accountant’s Report shall state, with any variations that we consider may be necessary, that, in accordance with your instructions, we have compiled, without carrying out an audit, the financial statements from the accounting records of the business and from the information and explanations supplied to us.
1.4 We have a professional duty to compile financial statements which conform with generally accepted accounting principles (GAAP). Should we identify instances where the financial statements do not confirm to GAAP, or if the accounting policies adopted are not readily apparent, we shall highlight such matters if they are not clear from the financial statements.
1.5 As part of our normal procedures we may request you to provide written confirmation of any information or explanations given to us orally during the course of our work.
1.6 Additionally, you are responsible for ensuring that the activities of the business are conducted honestly and that its assets are safeguarded and for establishing controls designed to deter fraudulent or other dishonest conduct and to detect any that occurs.
1.7 Finally you are responsible for ensuring that the business complies with laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur.
1.8 You have undertaken to make available to us, as and when required, all the accounting records of the business and related financial information necessary for the compilation of the financial statements. You will make full disclosure to us of all relevant information.