Hello all,
We have a limited company client who has French and German subsidiaries, this year the foreign companies have grown significantly and they now should be preparing group accounts and we need to audit the subs as well as the group.
We are in the final throes (or so we thought!) of preparing the UK company accounts/audit.
If they do not prepare group accounts or have the subs audited can we just qualify the audit report or do we need to take more serious action?
Thanks in advance
Replies (4)
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You had best speak to your institute
They will be the ones who are upset if you do not follow their guidance.
Why no group accounts?
If the group no longer qualifies as small, you should be producing group accounts and can go on and prepare them when you have final accounts for the parent and the two subsidiaries.
If the subsidiaries have not been audited (and this would seem to be a critical failure of audit planning), I think that you will have to disclaim any audit opinion on the group accounts, but as Chris says, talk to your regulator.
Some stirrings in the grey matter ...
... along the lines of having to require group accounts for two consequetive years, probably talking out my back passage and haven't time to research this but thought may need considering!