Small charity client growing...

Small charity client growing...

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A client of ours, a small charity, is likely to receive grants in the coming months that mean it will need an audit, and we do not hold an audit certificate.  What do you think is best - retaining client and preparing accounts pack et for auditors, or advising that they would be best moving on?

I am not sure if it is more hassle than it is worth holding on to the accounts side.

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By johngroganjga
31st Dec 2013 12:24

In your interest to talk to a friendly firm of auditors and put joint proposal to the trustees whereby you continue to do the accounts work, but of course it will be for the trustees to decide how to deal with things.  

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By Tosie
31st Dec 2013 12:54

Advise move on.

My experience from working in an audit firm (in the past) is that the client ends up paying more when two parties are involved.

We accepted audits from a couple of local accountants who produced wonderful detailed accounts and working papers unfortunately we had to check the schedules and reconciliations in detail which resulted in the client paying twice for the same job.

I think the accountants found it very annoying to see us getting a bigger fee when they had, in their opinion, done all the work. Also to be honest I think we indulged in a bit of nit picking to justify our fee.

 

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By johngroganjga
31st Dec 2013 13:05

Tosie may be right that the fee proposal I recommended you put together would be uncompetitive compared with the alternative form a one stop shop, but that is not my experience.  Client is in for a substantial hike in fees in any event.  In my opinion it's certainly worth a try.

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By johngroganjga
31st Dec 2013 13:12

My limited experience of joint arrangements of this type is that the audit tends to cost 50% more than the accountancy.

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By Bor2903
31st Dec 2013 16:52

Thanks johngroganjga and Tosie. I think you have stated my concerns- we would do most of the work, they would get most of the fee and we would end up annoyed with the 'nit picking'. Rather than go through their processes, I will advise that they should source an audit firm now. Thanks again.

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By johngroganjga
31st Dec 2013 16:59

They would get most of the total (greatly increased) fee but you would get as well paid as you do now for what you do. But up to you if you don't want to pursue that opportunity.

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