Upon review of the new client's previous year accounts it became obvious that the company should have carried out a statutory audit in 2005 & 2006, but failed to do so!
The company had balance sheet total in excess of the audit threshold. The failure appears to be the result of negligence from the previous accountants/directors.
Interestingly the directors’ report has the small company exemption note!
The directors have also since changed.
We/the present directors are eager to rectify the situation, but not sure how to go about. We have not approached the companies house yet.
Has anyone had a similar experience or can suggest how to proceed?
Who has the legal responsibility to put this right now considering the directors and accountants have now changed?
We wish to avoid taking any legal actions against the previous accountants/directors unless the company suffer any damages?
Look forward to any comments