Unit 32 need help!!

Tamilla

Hi ,
Could somebody help me with question above:
On enquiry the previous accountants say they cannot hand over any information because it was mistakely shredded.Why this is not in accordance with the AAT Guidlines on Professional Ethics.
Thanks a lot.
Tamilla

sdv

Tamilla wrote: »

Hi ,
Could somebody help me with question above:
On enquiry the previous accountants say they cannot hand over any information because it was mistakely shredded.Why this is not in accordance with the AAT Guidlines on Professional Ethics.
Thanks a lot.
Tamilla

I think that the above problem is spli into 2 sections

1 - ownweship of the documents
2 Duty of care

1 ownership of document
If the client has paid all the outstanding fees of the Old accountant, the all the reports and documents prepared (as per engagement letter) belongs to the client. However, the correspondance and working papers still belog to the accountant. If the fees are outstanding the the old accountant may have lien over the documents but he still has a duty of care to his client.

2 Duty of care
The accountant has a duty tp exercise a reasonable care and skill. If the accountance breaches this duty, he may be liable for the losses (to recreate those reports, etc) which are caused due to the accidentally shredding of documents and papers. (section 257)

Hope this helps

Tamilla

Thanks very much for your answer,great explanation.