Some Advice from Peugeot (Steve)

peugeotpeugeot Experienced MentorRegistered Posts: 624
Just a bit of advice for those of you who prepare accounts for Limited Companies who are a bit unsure of various disclosures.

Most of you have read my article on disclosure problems. However, the Professional Oversights Board (POB) have now started to get involved in reviewing accounts submitted to Companies House. Recently the POB reviewed 355 sets of accounts submitted to Companies House by small/medium firms - and the errors they found were astonishing. Typically:
  • newly incorporated firm with prior year figures
  • issued share capital more than authorised
  • balance sheets not adding up
  • overdrawn loan accounts, cleared by the year end by way of divi but not disclosed in the accounts.

Amongst lots of other (worrying) errors/omissions and general anomolies. This does not, in my opinion, show a general lack of knowledge but it shows a general lack of awareness.

Take time to read my article on disclosure problems, here:

http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=186607&d=1032&h=1024&f=1026&dateformat=%25o%20%25B%20%25Y

This has been updated for the FRSSE 2008 requirements. As a final word of warning - be careful - don't leave yourself open to PI claims just because you're busy.


Kind regards
Steve

Comments

  • DavePDaveP Feels At Home Registered Posts: 79
    "newly incorporated firm with prior year figures"

    You're joking right?!

    How on earth did they manage that one!!
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Relied on software. What they have done is brought figures over from the previous year when the business was a sole trader.

    Very embarrassing!!

    Kind regards
    Steve
  • DavePDaveP Feels At Home Registered Posts: 79
    "they" Steve?

    Something you care to admit..?!

    ;)
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    It definitely wasn't us I'm pleased to say!!:thumbup1:

    The findings were in a report from the Professioal Oversights Board.

    I have recently seen a balance sheet compiled (and audited) by a Big 4 firm for a pension fund that didn't balance. We all make mistakes, but I thought that was bordering on the lines of inexcusable.
  • cornflowercornflower Well-Known Registered Posts: 129
    Hi Steve

    That's a really intersting link. I am thinking of doing some private accounts work in the near future. Im just waiting on DFS result and my audit sim.:tongue_smilie:

    I am intrigued as to how you know all this information though steve. Do you teach as well? How do you do it:thumbup:

    Carrie
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    cornflower wrote: »

    I am intrigued as to how you know all this information though steve. Do you teach as well? How do you do it:thumbup:

    Hi carrie,

    I do not teach though I am looking at doing some seminars across the country when my workload calms down a little. I just don't have the time to do that at the minute.

    I have specialised in audit/financial reporting and been responsible for tech compliance at our firm for the last 10 years and do audit work for other firms who are either unqualified or not registered auditors so advise other accountants on compliance issues. The article was just a combination of issues I had encountered over the years.

    Good luck with your results.

    Kind regards
    Steve
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