A client has asked me to sign the Ltd company abbreviated accounts I prepared for the bank.
I did not prepare an accountant's report and have told him that the accountants are signed by a Director (in this case the other Director).
I do not prepare this Director's SA.
Shall I just ask for the bank to write to me with their request? Shall I just sign on the front of the accounts or prepare a covering letter? What would you do?
I am off with kids this week but the housing market seems to be booming as loads of urgent mortgage requests.
Replies (15)
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abbreviated accounts?
I can't see that the abbreviated accounts are much use to the bank. The bank would, in any case, be able to obtain a copy of what was filed at companies house via Experian (or whatever agency they use)
Surely they want a copy of the full accounts that you prepared on which there is an accountants report?
Why not reprint with accountants cert that is presuming you prepared the accounts?
I always attach accountants cert- pointing out to client that's what they get from a qualified accountant.
It is quite understandable that the lenders want confirmation that the accounts have been prepared by independent accountants. Without that confirmation, after all, how are they supposed to know that the borrower has not just made up the figures.
I agree with the above suggestion that you should attach the usual compilation report and sign it. As a matter of interest why is there not one there already?
Astounded
I'm astounded that the bank is happy with just a balance sheet and a couple of rudimentary notes but, personally, I wouldn't have any objection to doing as they ask.
Banks have no idea what they are requesting
I repeatedly get requests from clients' banks for audited accounts for one-man band limited companies, sometimes even for sole traders. If they only ask for a balance sheet, only give them a balance sheet. More fool them if they fail to request and review the appropriate information.
not the bank
Send the accounts (with the report) to the client, not directly to the bank.
Unrelated
On an unrelated note, my firm (unless it is an audit) do not attach an accountants report nor put even their name on the company information page.
There is no evidence at all that a firm of ICAEW accountants has prepared it therefore.
Not a policy I really agree with, but it has got us out of a hole at least once.
How has it got you out of a hole?
On an unrelated note, my firm (unless it is an audit) do not attach an accountants report nor put even their name on the company information page.
There is no evidence at all that a firm of ICAEW accountants has prepared it therefore.
Not a policy I really agree with, but it has got us out of a hole at least once.
How has it got you out of a hole? I always viewed the accountant's report as a great big disclaimer rather than providing much assurance to the reader?
Indeed - we've been picked up multiple times by the Institute over it, but as it isn't mandatory they don't take it any further. They did warn us that by not disclaiming we potentially left ourselves open (as you said).
Regarding the hole - (now former) client once took our VERY draft accounts for discussion purposes only, still containing multiple errors on them, lightly photocopied them to remove the watermark, signed them and filed them.
When the Department of Trade and Industry (that's how long ago it was) Directors Disqualification section came knocking we turned them away with a "Our name is no where on those accounts". They went away. Don't think the director was ever disqualified though.
Interesting, but surely that behaviour is no less fraudulent, nor difficult to execute, than adding a fake accountant's report with your name on it and filing it?
Crime?
Whether there's a crime or not isn't a matter of common sense. It's a matter of whether there's sufficient evidence that a defence lawyer can't rip to shreds.