The company's financial record.
WHAT ACCOUNTS COMPRISE
A statement of financial position A statement of profit or loss Notes A directors' report, where required An auditor's report, where audit applies
WHO IS RESPONSIBLE FOR THEM
The directors.
WHY THAT MATTERS
Accounts prepared by an accountant remain the directors' responsibility.
WHAT DIRECTORS MUST DO
Ensure proper accounting records are kept Ensure accounts give a true and fair view Approve them
WHAT PROPER ACCOUNTING RECORDS MEAN
Records sufficient to show and explain the company's transactions and position.
WHY THAT OBLIGATION MATTERS
Failure to keep them is itself a breach.
WHAT AUDIT IS
Independent examination and an opinion on the accounts.
WHEN IT APPLIES
Depending on company size, type and regulation.
WHAT TO ESTABLISH
Whether your company requires an audit.
WHAT AN AUDITOR EXAMINES
Whether the accounts reflect the underlying records and position.
WHAT THEY REQUIRE
Access, explanations and evidence.
WHAT TO PREPARE
Records that are complete and reconciled.
WHY
Audit of poor records is expensive and it produces qualifications.
WHAT A QUALIFICATION MEANS
The auditor could not satisfy themselves on something.
WHY IT MATTERS
Lenders, buyers and regulators read it.
WHAT TO DO ABOUT MATTERS RAISED
Address them, and evidence that you did.
WHAT TO APPROVE
The accounts, by the board, recorded in minutes.
WHAT TO FILE
Per the requirements.
