VAT Errors

VAT Errors

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Hi all,

I recently started working in practice again after around 12 months in industry. I started the first job and queried some errors on VAT, specifically VAT being claimed on private expenses (confirmed as nothing to do with the business by the client).

I amended the accounts to show the errors as needing to be corrected as I was taught to & noted on file that these should be communicated to the client. These adjustments have subsequently been reversed in the accounts! 

My question is twofold - 1) Was I right in the first place, is this the correct way to deal with them? & 2) How do I stand ML-wise if the accounts have been changed subsequent to my preparation?

Thanks.

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RLI
By lionofludesch
27th Jan 2012 13:13

1.  Debit Drawings/Directors

1.  Debit Drawings/Directors Loan; Credit VAT liability. Tell the client to make the adjustment on the next return (assuming it's relatively small).

 

2.  I think you need to ask the question of whoever altered the accounts and, if you're not satisfied, make the report.  You're aware, so you're involved unfortunately.

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By Sandnickel
27th Jan 2012 13:41

Thanks for your answer. That's how I was taught - alter the control account and inform the client in writing.

The person who amended the accounts was the managing partner which puts me in the worst position!

I guess I need to discuss their ML procedures with them. Looking forward to that!

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