can work performed by a bookkeeper for accounts of a small company be held responsible for incorrect entries if the director has signed off the accounts? Is it not his duty to ensure that the numbers reflected are correctly?
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no the directors are responsible
you say errors but we have no idea why those arose or whether they are material - the firectors should employ suitable accountants and take the blame themselves if they donot
Agree with carnmores
The directors are responsible for the accounts. If there is an issue with integrity of the accounts filed with HMRC the bookkeeper will not be accountable to HMRC. However, the bookkeeper also has a responsibility to the company. You don't say if the bookkeeper in question is an employee, self-employed or a company.
Lets assume the bookkeeper is not an employee. If the bookkeeper has not met the standards expected of their institute/association or has failed to keep to their contract as detailed in their letter of engagement then the client might be able to build a case against the bookkeeper. If that is a possibility the bookkeeper might want to alert their professional indemnity insurers.
No formal letter of engagement in place.
Bookkeeper is not an employee but a Ltd company.
Bookkeeper is denying responsibility as part of the function was run by the director himself. What remedies are available for for the directors?
and further
if you want to remove a document that has been filed @CH you will need a court order - CH either feel that they cannot do or will not do it
what is problem
Could you e xpand on your question in order that we can offer more detailed
advice.
Has the company suffered a finanacial loss.
In simple terms the book-keeer had to perform their duties to acceptable standards.
One would expect an accountant to be involved in ltd company accounts preparation.
Grabbit & Co
I've recently found out that a software company may have inadvertantly filed it's own accounts with Companies House with accountants described "Grabbit & Co".
Now, a cosmetic error like this or a supercilious note missing is something of no consequence except to the anoraks who take great interest in such matters.
What is of more consequence - and we are not told if this is the case - is were the figures MATERIALLY wrong in the querist case?. If the figures were wrong how did the error arise - was the bookkeeper not given certain pertinent information by the directors? Did the directors seek to save money by using a bookkeeper alone instead of bookkeeper plus accountant? My vote is for the bookkeeper being NOT responsible for year end accounts errors UNLESS that bookkeeper holds his/her company out as being capable of preparing year end final accounts - there can be a big difference to "balanced up books" and accurate year end accounts - such a lot depends upon directors advising the accounts preparer of data not necessarily included in the bookkeeping figures plus, of course, the accounts preparer understanding provisions, depreciation, difference between capital and revenue, accruals and prepayments.