CCA 2.1 – Schedule of Professional Services: Compilation of Financial Statements

This schedule should be read in conjunction with the engagement letter, other schedules of services and our standard terms and conditions. The schedule sets out the basis on which we are to compile the statutory financial statements of the charity and perform other accounting services and the respective areas of responsibility of the trustees/directors and of ourselves.

1 responsibilities of trustees

1. Your responsibilities as trustees of the charitable company are set out in the schedule of audit services.

1.2 You have agreed that your staff will be responsible for:

  • keeping the record of receipts and payments;
  • reconciling the balances monthly with the bank statements;
  • keeping posted and balanced the accounting ledgers;
  • preparing a detailed list of ledger balances;

1.3 You have undertaken to make available to us, as and when required, all the charitable company’s   accounting records and related financial information, including minutes of management and Board meetings necessary for the compilation of the accounts.  You will make full disclosure to us of all relevant information.

2 role of the accountants

2.1  You have asked us to help you compile the statutory financial statements in accordance with the requirements of the Companies Act 2006, the Charities Act 2011 and regulations made under it and with the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities 2015 (FRS102).  We will compile the annual financial statements for your approval based on the accounting records maintained by you and the information and explanations given to us by you.  In carrying out our engagement we will make enquiries of management and undertake any procedures that we judge appropriate.

2.2  We have a professional duty to compile financial statements that conform with generally accepted accounting principles from the accounting records and information and explanations given to us.  Where we identify that the financial statements do not conform with the requirements of legislation or with the guidance issued by the Charity, or if the accounting policies adopted are not immediately apparent, this will need to be disclosed in the financial statements.

2.3  Our responsibilities as auditors are set out in the schedule of audit services.

3 other accounting services

3.1  It is agreed that we should carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information.  We shall:

  • provide assistance to the company secretary by preparing and lodging returns with the Registrar of Companies; and
  • investigate irregularities and fraud upon receiving specific instructions.