SCHEDULE OF SERVICES – (702) MANAGEMENT ACCOUNTS
This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.
Scope of services to be provided
Our responsibility to you
We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement 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.
Your responsibility to us
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.
You are responsible for providing us with the necessary information and prime records for the preparation of the management accounts, including:
1. Sales invoices.
2. Purchase invoices.
3. Bank statements.
4. Details of bank and cash payments.
5. Details of bank and cash receipts.
6. Stock and work-in-progress details.
7. Access to your accounting records.
We have also agreed that you will provide the following:
1. Monthly/quarterly records of receipts and payments reconciling the bank control account with the bank statements.
2. A record of the amounts owed to the business.
3. A record of amounts owed by the business.
4. A list of accruals.
5. A list of prepayments.
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 carry out any audit work as part of this assignment. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts.
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 solely for use by the proprietors / owners of the business. They should not be shown to any other party without our prior agreement.
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.