SCHEDULE OF SERVICES – (702) MANAGEMENT ACCOUNTS
SCHEDULE OF SERVICES
This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.
MANAGEMENT ACCOUNTING SERVICES
Our service to you
We will prepare from the information and explanations provided by you, your monthly/quarterly (as agreed) management accounts, including details of accounting policies and assumptions.
As and when agreed between us we will discuss with you the management accounts/prepare a report and commentary on the figures for discussion with the board/management.
As and when agreed between us we will attach a report to the management accounts highlighting the scope of the work we have undertaken, including a statement of factual findings. We will highlight
- that no audit has been undertaken,
- limitation of liability that applies,
- if we have a letter of engagement or not with the third party.
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 company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Standards on Auditing so that we could report on the truth and fairness of the financial statements. 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.
If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you. If we decide to undertake an audit assignment at your request, a separate engagement letter will be required.
The intended users of the management accounts are the proprietors of the business / company directors.
Our responsibility to you
We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where necessary 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 when this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.
The management accounts are prepared for your internal use within your business by the proprietors of the business / company directors. They should not be shown to any other party without our prior agreement.
We have set out the agreed scope and objectives of your instructions within the letter of engagement. Any subsequent changes will be discussed with you and where appropriate a revised schedule of services will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.
In arriving at our conclusions, we will use our knowledge of the business. However, some of the issues that we will discuss, and therefore the conclusions drawn, will rely on the answers that you provide us with, which we may ask you to confirm to us in writing. We therefore accept no responsibility for losses incurred as a result of your actions or lack of actions on the accounts.
We are bound by the ethical guidelines of ACCA and accept instructions to act for you on the basis that we will act in accordance with those ethical guidelines. A copy of these guidelines can be viewed at our offices on request or at http://www.accaglobal.com.
Your responsibility to us
You are responsible for providing us with the necessary information and prime records for the preparation of the management accounts, including:
- Sales invoices.
- Purchase invoices.
- Bank statements.
- Details of bank and cash payments.
- Details of bank and cash receipts.
- Stock and work-in-progress details.
- Access to your accounting records.
We have also agreed that you will provide the following:
- Monthly/quarterly records of receipts and payments reconciling the bank control account with the bank statements.
- A record of the amounts owed to the business.
- A record of amounts owed by the business.
- A list of accruals.
- A list of prepayments.
The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.
It is your responsibility to safeguard the assets of the business and for taking reasonable steps for the prevention and detection of fraud and other irregularities with an appropriate system of internal controls.
You are responsible for making available to us, as and when required, the business accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings, for the purpose of this engagement.
Limitation of liability
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.
There are no third parties that we have agreed should be entitled to rely on the work done pursuant to this engagement letter.
You may request that we provide other services from time to time. For such work we will issue a separate letter of engagement and scope of work to be performed accordingly.
Because rules and regulations frequently change you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.