My new client (limited company) wishes to terminate their services with their old accountants. What documents do the old accountants have to legally provide to the client and/or new accountants? Many thanks.
Replies (12)
Please login or register to join the discussion.
Statutory documents and client's own documents. I assume from your question that you are hoping for working papers, which you'll be lucky to get unless the outgoing accountant is particularly generous.
I disagree with SteLacca. To prepare accounts you plainly need breakdowns of balance sheet figures in the last accounts. To that extent you are entitled to information from the accountant’s working papers.
I realise I need these breakdowns- my question is - if the previous accountant is being difficult he may not want to provide them - does he legally have to provide them
What - do you mean can you take him to court over it ?
No.
Do you actually have a situation where a former accountant is being difficult, or is your question hypothetical?
Whilst I respect your disagreement, most of the PBs have a minimum to hand over. Working papers belong to the accountant, not the client, and so as a bare minimum, I was accurate.
Ethically, I'm very much on board with you.
Having said that, the OP asked about legally, in which case the correct answer is pretty much nothing.
Yes but the “minimum” specified by the professional bodies is well in excess of simply returning the client’s property to them. So anyone who only provided your minimum would be in trouble with their professional body, if they had one of course - which is another matter.
The minimum required by law must surely be at least the client’s own property. To refuse to return the client’s property on request must be theft, I would have thought.
So far as the accounts go, in general, I would say an opening trial balance or a sufficient breakdown of the figures on the balance sheet to enable one to be prepared.
It depends on what your ask the outgoing accountant to provide ... so far, in over 45 years I have got pretty much what I asked for every time, give or take a few minor details ... ask, and ye shall get!