A property management company have appointed a new managing agent, (my client) New directors were appointed and the old directors have resigned. The new directors do not trust the previous directors and want to challenge previously signed off accounts. Can they do this? If they find anything unto wards, what then? Who pays the cost? Any advice gratefully received, as always.
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They can. If there's something wrong, it depends what and why it's wrong.
Who pays ? Them. Unless there's been some major error on your part, in which case it's you.
I read this as if you have not yet prepared accounts
Your client the managing agent was not involved with the prior period
It is usual for the managing agent to prefer to pick the accountant, so when the property manager changes, so does the accountant.
Quite simple really
The Service charge company picks up the cost of any work done, effectively the cost is shared out amongst all the company members
This is probably going nowhere productive
I tend to use the term Service charge company for the company that just charges its members and pays the bills
I do a lot less now but used to do over 100 of these
I agree that when all changes the new directors always want to stamp their feet
Not your issue to mess about informing the members
Leave that to the Property managing agent
But the time you are likely to spent will be bigger than future years when you have just the one system and an agent that has dealt with the entire year
If the directors want the prior year reworked you will need prior year records
Make sure you are comfortable with your fee for the reworking and it is agreed up front with the opportunity to increase should some conflict arise
Of course they can if they believe they are inaccurate.
We have re-done accounts and tax returns for clients from prior year when they didn't trust the accounts.
It's more common than you think.
Who pays the costs is more tricky depends on whose at fault and whether is was deliberate.