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Financial Statement

Hi,

Client of mine is applying to the bank for a bank loan and as such the bank require financial statements relating to this 2 restaurants prepared by an accountant or at least on headed note paper.

He needs this statement urgently and despite me not having seen any paperwork wants me to use his own estimated figures.

My question is: if I put these numbers (and profit) on my headed paper and it turns out to be wildly incorrect what liability would fall on me? I would propose to include a paragraph underneath the statements saying that these numbers have been prepared using the Directors information and no audit has been undertaken etc etc

Would this paragraph be enough to cover me?

Matt

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26th Aug 2010 13:00

Whats the point .....

Legally you could cover yourself by a disclaimer, but, I'd be amazed if the bank accepted anything which effectively said you had prepared nothing and examined nothing and were merely typing out the figures your client told you to type.

You really need to see the relevent records at least to verify turnover and major costs (materials, wages, etc).

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By Monsoon
26th Aug 2010 19:05

Agree with CD

I wouldn't put my name to figures I hadn't looked over or prepared, even with a disclaimer.

As CD says, the bank should pick up on the fact that you've said words to the effect of "Dear bank, my client has given me these figures he has prepared himself, I've no idea if they are right and haven't checked them, but he asked me to write to you on my headed paper, so I am. Much love..." That's pretty much the level of disclaimer you'd have to use and therefore it's a bit pointless. :)

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27th Aug 2010 10:35

I'm a bit confused

What work do you do for this client if you don't prepare his accounts?  Are you saying that you do his tax return based on accounts he produces himself?

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27th Aug 2010 11:01

Thanks for your responses.

The background behind this is that its a friend of a friend who I foolishly agreed to help out......I think its the last time I shall mix business and pleasure.

Matt

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