Schedules of Service
This schedule should be read in conjunction with our standard terms and conditions. The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile unaudited financial information for the business.
Our function as accountant is to act as agent on your behalf in preparing the accounts (income and expenditure account and balance sheet as agreed) of your business. This may involve:
Writing up your books and records from the information and vouchers provided and preparing draft accounts for your approval.
Unless otherwise agreed in a bookkeeping arrangement, you will be responsible for:
Maintaining records of all receipts and payments of cash.
Maintaining records of invoices issued and received.
Reconciling balances with the bank statements.
Preparing a record of business mileage for all partners undertaken in the year.
Preparing a record of hours per month worked at home for all partners if you wish to claim for business use of your home.
Preparing details of any loan interest paid.
Preparing a record of capital introduced by the partners.
Advising us via the nominated partner of any changes to the profit sharing arrangements of the partnership.
Preparing details of the following at the year-end if appropriate: stocks and work in progress; fixed assets; amounts owing to creditors; amounts owing by customers; and accruals and prepayments.
Our report will be based on information gained from you, and we accept no responsibility for any losses arising out of implementing our report. Further, our report requires us to rely substantially on your representations. Therefore we can accept no responsibility for any losses for issues not covered in our report.
As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.
We will prepare the accounts from the information and explanations that the partnership provides to us. After obtaining the approval and signature of the nominated partner we will submit these accounts to you.
We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles nor to the specific rules relating to the cash accounting regime we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.
Our service to you
We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the partnership, nor the items of expenditure and income. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.
To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.
We will attach to the accounts a report developed by the Consultative Committee of Accountancy Bodies (CCAB) which explains what work has been done by us, the professional requirements we have to fulfil and the standard to which the work has been carried out. Web links are provided in the report so that you can obtain further information from the Association of Chartered Certified Accountants about:
The technical guidance for the work, and
The related ethical and other professional requirements.
The intended users of the report are the partners. The report will be addressed to the partners.
We will communicate with the partnership at its place of business, this being. Any alteration to these instructions will require notification in writing and agreement by all partners.
Limitation of liability
We specifically draw your attention to the limitation of liability paragraphs in our standard terms and conditions which set out the basis on which we limit our liability to you and to others. You should read this in conjunction with the limitation of third party rights paragraphs in our standard terms and conditions which exclude liability to third parties. These are important provisions which you should read and consider carefully.