Technician Unit 17 -company records 3yrs???

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone help? The BPP book Unit 17 - Implementing Audit Procedures - On page 7, it states that private (Ltd) companies are required to keep accounting records for 3 years. I work for a company with a turnover exceeding £1m per annum, being a private (Ltd) company and according to their accountant we have to keep all records for 6 years. Could this ruling have changed in the recent years that the accountant may not be aware of or is it a misprint in the book???<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Hi Sharon,<BR><BR>I think the BPP text you quote is wrong. In the BPP Technician Unit 18 book - page 197 of last year's text - it says that companies must keep records until six years from the end of the accounting period (or later if the company is the subject of an enquiry), and that is what I have always understood as general practice.<BR><BR>Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Chris, <BR>I havent looked in unit 18 but the 2003/2004 unit 17 book on page 7 states 3 years. Have you had a look at it?<BR>Sharon
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Any records relating to Tax must be kept for 3 years. The fine is £3000 per year if they do not.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Is anyone actually doing the auditing devolved. Am I right in thinking that this Unit is usually an option.<BR><BR>Please let me know
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Hi Sharon,<BR><BR>I finished my audit unit last year so I don't have this year's unit 17 book. I still think the BPP text is wrong - take a look at the Inland Revenue website and see what they say about retention of accounting records. Try http://www.inlandrevenue.gov.uk/ctsa/record.htm<BR><BR>Don't be afraid to contact BPP and tell them about an error. I contacted Osborne Books last year about some errors and they gave me a couple of free books in gratitude!<BR><BR>Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Hi Sharon again,<BR><BR>I have just seen a reference to The Companies Acts requirement to keep accounting records for 3 years for a private limited company and 6 years for a public company. But the Inland Revenue insists on keeping records for tax purposes for 6 years for all organisations that it regards as companies. Maybe this is what causes the confusion.<BR><BR>Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Technician Unit 17 -company records 3yrs???

    Thanks for the info.<BR>I have just spoken to Inland Revenue and they say that we need to keep 3 years accounting records, but they prefer 6 years. In other words - 3 years is compulsory but 4-6 years is preferred.

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