FAO Steve
Glynis
Registered Posts: 488 Dedicated contributor 🦉
We have the auditors in at work and one of them who looks young enough to be still in school has said that we have to produce a cash flow statement. What on earth is he talking about as we do our accounts on sage.
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Steve this is quite urgent as well so if you could reply asap that would be great.0
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Do you think Steve has read this and ignored it or do you possibly think he hasn't read it yet???0
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The Cash Flow Statement is covered with Unit 15. It is a simple document to produce but is invaluable for a company to keep a track on all monies in and out.
Receipts
Sales
Shares
Total Receipts
Payments
Purchases
Admin
Material costs etc
Total Payments
Net cash flow (Total Payments minus total receipts)
Opening bank balance
Closing bank balance
It is usually produced monthly. Hope this helps until someone a bit more articulate comes along
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Glynis didn't you do DFS?0
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I did do DFS and yes I do know what a cash flow statement is. I just don't understand why the audit person is saying I need to do one. Is this something new that has come in? The auditors are causing me no ends of stress and it doesn't help that they are so demanding.0
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have you asked them why they want one?0
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Look over previous year as a cashflow statement should be produced regularly as it is a statement showing the inflows & outflows of cash and equivalents and how it reconciles to the opening & closing balance of the cash & equivalents.
It is unlikely this would be a new request, if you have been audited before.
All companies I would have thought it prudent to do a cashflow statement reconciling inflows & outflows.0 -
Of course I have asked but they just blind me with their audit speak. I am so fed up with them and have got another week with them.0
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Glynis,
It is utterly despicable that the auditors have had the audacity to ask you questions and that Steve has yet to produce a comprehensive 5000 word response to your initial post.
What have the police said on the matter so far?0 -
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Well I am pleased you are all having a good laugh but this is a work related problem which I don't think is that hilarious thank you very much.0
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chill out good grief you need to work out a work life balance glynis remember you are talking to people that have had the worst work day in the accounting year for practise, so when you talk about work stress i think we know.
Relax it is weekend work can wait till tomorrow0 -
Rachey - I'd like a response to that as well to be honest.
Glynis maybe if you sat back and actually thought about what you are writing.
You want to work in audit and have submitted many posts to that point and yet you run them down saying that you dont understand audit speak? The auditor is going through his list of questions, (by the way what has him looking like he just left school got to do with the price of tea?), for which a competant accountant, (qualified or otherwise) should be able to assist in a response. If you are unsure what they are asking maybe you need to speak to your manager and get the auditor to follow a different route of questioning of which you are more comfortable answering competantly.0 -
chill out good grief you need to work out a work life balance glynis remember you are talking to people that have had the worst work day in the accounting year for practise, so when you talk about work stress i think we know.
Relax it is weekend work can wait till tomorrow
You mean there is life outside work????0 -
Glynis,
Please understand that I will reply to messages with my name on them. However, I am not constantly transfixed to the AAT forums so there could well be a few hours/days delay in my responding.
I would say that your company is classed as medium-sized under the Companies Act which would then mean a cash flow statement is required as your company won't be able to take advantage of small company exemptions. Small companies are encouraged, but not obliged, to prepare a cash flow statement under FRSSE but medium-sized entities are obliged under FRS 1. This is why your auditor is asking for a cash flow statement.
Regards
Steve0 -
Steve this is driving me mad. What do you mean FRSSE? What are the small company exemptions? Nobody seems able of giving me a proper answer.0
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FRSSE financial reporting standard for smaller entities is a separate accounting standard for smaller companies which can reduce the reporting burden.
Smaller companies don't have to prepare a cash flow statement under FRSSE but only certain companies can take this route. You should have covered this under the audit studies as you will have needed to know which companies need auditing and the limits that decide whether a company is small or not.
A small company also has the 'allowance' of filing abbreviated accounts at companies house.0 -
Googling any of those terms would have explained them quite simply too0
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Nobody seems able of giving me a proper answer.
Well I can only suggest you find your own answer by researching Companies Act 2006 FRSSE 2008 and FRS 1
Accountants who work in practice often spend lots of time doing research - it can also count as CPD so I think this will be a good start for you and you can claim CPD points for it.
Regards
Steve0 -
Steve Collings wrote: »Well I can only suggest you find your own answer by researching Companies Act 2006 FRSSE 2008 and FRS 1
Accountants who work in practice often spend lots of time doing research - it can also count as CPD so I think this will be a good start for you and you can claim CPD points for it.
Regards
Steve
I also find that somethimes I can take it more more if I have done the hard work and looked online/in books, i may need assitance with some of the terms but the hard work has been done with the research.
Glynis have you tried researching anything that you have commented on or has been given to you.
This forum is best utilised when you are seeking assistance, i.e. you have already done the hard work and seek clarification. It is almost as if you want to be hand fed everything. If you wish to become a successful auditor you have to go that bit further and seek answers. Not get them from other people. You also need to understand the question, and sometimes, how you respond so bluntly sometimes, i dont believe that you necessarily understand the question.
These individuals who have helped you so much in the past are not here for the beck and call of anyone who doesnt understand what they are doing.
Glynis if you dont know why things are happening or what they are asking I would strongly recommend that you speak to your supervisor/manager as a change in your role may be beneficial to you until you gain more confidence in what is happening in your accounting surroundings.0 -
Steve Collings wrote: »Well I can only suggest you find your own answer by researching Companies Act 2006 FRSSE 2008 and FRS 1
Accountants who work in practice often spend lots of time doing research - it can also count as CPD so I think this will be a good start for you and you can claim CPD points for it.
Regards
Steve
Steve WTF. I need a couple of line answer not something like this. How am I suppose to understand this.0 -
I also find that somethimes I can take it more more if I have done the hard work and looked online/in books, i may need assitance with some of the terms but the hard work has been done with the research.
Glynis have you tried researching anything that you have commented on or has been given to you.
This forum is best utilised when you are seeking assistance, i.e. you have already done the hard work and seek clarification. It is almost as if you want to be hand fed everything. If you wish to become a successful auditor you have to go that bit further and seek answers. Not get them from other people. You also need to understand the question, and sometimes, how you respond so bluntly sometimes, i dont believe that you necessarily understand the question.
These individuals who have helped you so much in the past are not here for the beck and call of anyone who doesnt understand what they are doing.
Glynis if you dont know why things are happening or what they are asking I would strongly recommend that you speak to your supervisor/manager as a change in your role may be beneficial to you until you gain more confidence in what is happening in your accounting surroundings.
I am trying to do my job to the best of my ability and to prove myself. I find the help here valuable to my learning and think the forums are the best place to get knowledge.0 -
Steve WTF. I need a couple of line answer not something like this. How am I suppose to understand this.
I do not follow AAT's CPD policy as I have to follow ACCA's but I am almost certain that the whole objective of the AAT's CPD policy is to develop your knowledge in accordance with your career ambitions. If yours is to work in practice then you need to do a lot of research. Accounting/auditing standards frequently change, tax legislation changes, Companies Acts change and you need to do some of the legwork yourself. I have not got time on a forum to go through the ins and outs of when a cash flow statement is required and when it is not under accounting standards and legislation - hence my posting the links for you.
As jorja1986 quite rightly points out, the forums objectives are to receive clarification on AAT related issues. They are not designed to offer a consultancy service and I would implore you to listen to your auditors and to work with them if you are to succeed in getting a career in practice.
Kind regards
Steve0
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