Accountant's report

bumblebee

Hi all,

Just thinking, what do we miss out by not signing accountants report?

Andy Blyth

For the accountant, the report is mainly a disclaimer.

For the user of the accounts, it provides comfort in the truth and fairness of the accounts because a licenced accountant has signed them, and it also adds value as it details the basis on which the accounts have been prepared (in addition to the accounting policies).

Bluewednesday

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Monsoon

bumblebee wrote: »

Hi all,

Just thinking, what do we miss out by not signing accountants report?

I'm confused. Why wouldn't we sign it?

As Andy says, it's mostly a disclaimer - it says we've done it properly, but based on the information and explanations they have given us, and they have approved it.

bumblebee

Monsoon wrote: »

I'm confused. Why wouldn't we sign it?

As Andy says, it's mostly a disclaimer - it says we've done it properly, but based on the information and explanations they have given us, and they have approved it.

I came accross this while going through the Guidelines for MIP, at point 3 it mentions that you can not provide assurance of the accuracy unless you are licenced in "Limited Assurance Engagement" (dont have a clue what that means!) Does this mean that accounts prepared by AAT MIP not registered with LAE dont accompany Accountants report? I dont get this too!! so, does this mean that the accounts will only have clients approval?

Andy Blyth

What you are reading about there is assurance engagements, for example statutory audit work. This does not apply to accounts prep.

The standard accountant's report for unaudited limited company accounts should state that you have not carried out an audit and therefore express no opinion on the truth and fairness of the accounts.

The rules you are reading only apply when your client wants you to provide an opinion in this respect (ie. An audit).

bumblebee

Thanks Andy for your post and clarifying my doubts. It all makes sense now.