Foreign currency exchange dates

GinnyBee

Just after a second opinion here please.

A client has purchases and income in $ which he says he has translated on each invoice on the day relevant (his books are in pretty good order so this is probably true!). Would you check all of them (I will of course check a sample to confirm he's doing it correctly!) which I'm inclined not to do. I just want to make sure I'm not under or over doing the work here, I know what I think I'll do so just after others thoughts on what they'd do!

Monsoon

You're right, just check a sample.

The job of an accountant doing the year end is not to check every transaction, unless the client wants you to and wants to pay for the additional service. If your sample checks suggest his books are reliable, that is fine. Only you know what constitutes a reasonable sample for each individual client.

reader

I'd be inclined to test check a non-random sample; i.e. any large or unusal amounts.

MarkT

I'd also ask (if you don't already know) if your client settled his accounts via the bank or an exchange house - personal experience in the past has proven the two can give rates up to 10c per pound, now that can amount to a fair amount when talking invoices for $0000's

GinnyBee

Monsoon wrote: »

The job of an accountant doing the year end is not to check every transaction, unless the client wants you to and wants to pay for the additional service. If your sample checks suggest his books are reliable, that is fine. Only you know what constitutes a reasonable sample for each individual client.

I'm doing management accounts at the moment for him, new client and he's really fussy! I just wanted to be able to say to him I'd done exactly what any accountant would have

Was having a bit of a moment of "what if..."