I'm about to switch accountants. They sent me their Letter of Engagement and I feel it does not reflect what I learn from them on the phone, on their website and in their brochures.
First of all, I was given a PDF brochure about their plans and I decided to sign up for their gold plan. There is no mentioning of the details of the gold plan nor any reference to it.
Below is the copy of the points in question from the Letter of Engagement:
1.1.1 I thought it is the accountant company who is responsible for "maintaining proper accounting records and for preparing financial statements". - Could you please advise?
1.2.3 "You have told us that the company is exempt from an audit of the financial statements. We will not check whether this is the case. However, if we find that the company is not entitled to the exemption, we will inform you of this." - I have not told you this and I do not even know what is an audit and whether my company needs it. - Could you please advise?
1.2.5 "we cannot provide any assurance whether the financial statements that we prepare from those records will present a true and fair view." - I would have thought that you will make sure that the financial statements will be accurate and true. - Could you please advise?
1.2.7 "Furthermore, as directors you have a duty to prepare financial statements that comply with the Companies Act 2006 and applicable accounting standards. If we find that the financial statements do not conform to generally accepted accounting principles, or if the accounting policies adopted are not immediately apparent, we must disclose this in the financial statements." -- Again, I would have thought that the financial statements are are prepared by you. - Could you please advise.
1.5.4 "We will tell you the amounts of income corporation tax to be paid and the dates by which the company should make the payments." - I thought this is calculated automatically by Iris OpenBooks which I will have access to. Could you please confirm that I will be able to make invoices myself through the system. - Could you please advise.
1.6.2 f) "to keep us informed about significant transactions" - Could you please make an example?
2.1.1 You will continue to deal with all matters required by law, such as ē Pay As You Earn including year end returns P35/P14/P60; ē forms P11D; and ē returns for sub-contractors. - Could you please advise as to what this means? If possible I would like you to deal with these as well.
2.2.2 c) "if any casual labour is taken on, you are required to operate P46 procedures. The completed P46 form should be passed to us for processing;" - Could you please advise as to what this means?
2.2.2 i) "any notice of coding received by you." - Could you please advise as to what this means?
3.1 "We may, from time to time, hold money on your behalf. The money will be held in trust in a client bank account, which is segregated from the firm's funds." - Could you please advise as to what this means?
11.1 "Our fees are calculated on the basis of the time spent on your affairs by the principals and staff and on the levels of skill or responsibility involved. Our fees will be billed when due, together with outlays and VAT and our invoices will be due for payment when issued." - I was informed that I will be paying a fixed fee for the Gold Plan. - Could you please advise?
12.1 "Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inconvenient forum, or to claim that those courts do not have jurisdiction." - Could you please advise as to what this means?
1.0 "that this agreement is entirely without prejudice to the Supplierís right to take whatever action it deems fit against the Company, even if doing so increases my liability under this agreement." - Could you please advise as to what this means?