COMPILATION OF THE STATUTORY FINANCIAL STATEMENTS (AUDIT)
The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile the statutory financial statements and perform other accounting services.
1. YOUR RESPONSIBILITIES
1.1 Your responsibilities as directors of the company are set out in Schedule of Professional Services - Audit.
1.2 You have agreed that your staff will be responsible for:
• keeping the record of receipts and payments;
• reconciling the balances monthly with the bank statements;
• keeping posted and balanced the purchase and sales ledgers;
• preparing a detailed list of ledger balances;
• preparing details of the annual stocktaking suitably priced and extended.
1.3 Where applicable, you have instructed us to prepare abridged accounts under The Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 as amended by The Small Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015. Your responsibilities as directors are to obtain the necessary consents and ensure the required statement is delivered to the Registrar.
1.4 You have undertaken to make available to us, as and when required, all the company's accounting records and related financial information, including minutes of management and shareholders' meetings, necessary for the compilation of the financial statements and will make full disclosure to us of all relevant information.
2. OUR RESPONSIBILITIES
2.1 You have asked us to help you compile the statutory financial statements in accordance with the requirements of the Companies Act 2006 and, where appropriate, for preparing accounts for filing with the Registrar of Companies. We will compile the annual financial statements for your approval based on the accounting records maintained by you and the information and explanations given to us by you and in accordance with IFRS, or FRS 101, or FRS 102, or FRS 102 Section 1A, or FRS 105, or the accounting framework agreed and applicable to you. In carrying out our engagement we will make enquiries of management and undertake any procedures that we judge appropriate.
2.2 We have a professional duty to compile financial statements that conform with generally accepted accounting principles from the accounting records and information and explanations given to us. Furthermore, as directors, you have a duty to prepare financial statements that comply with the Companies Act 2006, regulations made under that Act and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice (UK GAAP)) or, where applicable, International Financial Reporting Standards (IFRS). Where we identify that the financial statements do not conform to UK GAAP or IFRS or if the accounting policies adopted are not immediately apparent, this will need to be disclosed in the financial statements.
2.3 Our responsibilities as auditors are set out in Schedule of Professional Services - Audit.
3. OTHER ACCOUNTING SERVICES
3.1 We will also carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information:
• providing assistance in preparing and lodging returns with the Registrar of Companies; and
• investigating irregularities and fraud upon receiving specific instructions.
Updated December 2020