COMPILATION OF STATUTORY FINANCIAL STATEMENTS (LLP – MICRO ENTITY)
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 for the limited liability partnership.
1. YOUR RESPONSIBILITIES
1.1 As you consider that the limited liability partnership qualifies as a micro-entity in accordance with the conditions set out in sections 384A and 384B of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), you have expressed your preference that the limited liability partnership’s financial statements are prepared in accordance with the provisions in that Act applicable to a micro-entity. In particular, you have requested that the financial statements comprise only of the micro-entity minimum accounting items set out in regulations made under the Act.
1.2 As members of the limited liability partnership you are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership's transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and to enable you to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) regulations 2008). Though the financial statements of micro-entities are presumed to give a true and fair view, you are also responsible for preparing financial statements which have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)and the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) and regulations made under it, all as applicable to a micro-entity.
1.3 In preparing the financial statements, you are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
1.4 You also have a responsibility not to approve these financial statements unless you are satisfied that they comply with the micro-entity provisions.
1.5 You are responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.