Error in audited accounts

Error in audited accounts

Didn't find your answer?

I wonder if anyone can give us some advice please.

Our auditor of several years converted their partnership to an LLP earlier in the year. The accounts that we filed a few weeks later although signed after they changed to an LLP state that our auditor is XYZ LLP appointed on (the original date of their appointment almost a year before the LLP was incorporated).

What is the most straightforward way to correct this error whilst causing us least disruption?

File a notes of amendment to the accounts already filed?

File amended accounts?

and will it be necessary to file a notice with company's house removing the partnership from office and appointing the LLP even though they are still called XYZ?

or should we simply ensure the error is corrected in the subsequent set of accounts that will be filed, and if so how?

Thanks in advance for any points of view.

Replies (5)

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Locutus of Borg
By Locutus
27th Nov 2014 22:34

What error?
I mean, your auditor from several years simply changed their business structure.

It appears they were an LLP when they signed the audit report, so it is correct to sign as an LLP. I fail to see a big issue here - they just need to update their engagement letter with you.

Am I missing something? What's the big deal?

Thanks (1)
By johngroganjga
28th Nov 2014 05:45

Mountain out of molehill
It would have been usual for there to have been a note in the directors' report stating the the auditors had changed their name and business structure and were now practising as .... etc. But there is no big issue, and none of the remedies you propose is either necessary or proportionate.

Thanks (2)
pic
By jndavs
28th Nov 2014 08:28

Gosh!

Have you contacted Interpol?

Thanks (2)
avatar
By Alan Daines
03rd Dec 2014 21:42

Mountain out of a Molehill

Many thanks for your responses. To be honest I had considered it a non issue, and since speaking with the auditor they are of the same mind.

However, the credit reference company who raised the query appear to be of a different opinion and have withdrawn the company's credit limit until a satisfactory response has been received.

Since we have already explained the situation - the auditors converted to an LLP from a partnership,  it appears they are not satisfied with the facts as they are and short of inventing something they would prefer to hear there does not seem to be very much we can do about this.

Given your responses it is clear they are wrong but the reference agency seems to be a law unto themselves so what can we do apart from pack up our tents?

Thanks (0)
Replying to johnjenkins:
paddle steamer
By DJKL
04th Dec 2014 09:52

Amazed credit agency staff have any attention to detail

Alan Daines wrote:

Many thanks for your responses. To be honest I had considered it a non issue, and since speaking with the auditor they are of the same mind.

However, the credit reference company who raised the query appear to be of a different opinion and have withdrawn the company's credit limit until a satisfactory response has been received.

Since we have already explained the situation - the auditors converted to an LLP from a partnership,  it appears they are not satisfied with the facts as they are and short of inventing something they would prefer to hear there does not seem to be very much we can do about this.

Given your responses it is clear they are wrong but the reference agency seems to be a law unto themselves so what can we do apart from pack up our tents?

Have you got the auditors to write a letter on their current headed paper to the credit reference company confirming that they, XYZ LLP, audited the accounts of FF Limited and were successors in the appointment as auditors from the partnership of XYZ Partnership and (if true) that the partners of XYZ Partnership are the same individuals who are now the members of XYZ LLP?

I am frankly  amazed that any credit agency even cross referenced the date of appointment of the auditors with the date of creation of the LLP, are you sure this is their issue?

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