Case
Study: Typical client – auditing services
Client B is an international group of companies operating
worldwide, including the UK. Linn Maggs Goldwin has been the
group’s accountants and tax advisors since start of
business in 1997.
The UK company is not required to have an independent audit
as it falls within the turnover threshold and is not a part
of an EU group. Previously, we prepared financial statements
for the various group companies for filing purposes only,
with no additional audit reporting.
As the group increased its turnover internationally to its
current level of circa $US 60 million, we found that the group’s
suppliers – and in particular its merchant bankers -
were becoming more demanding on the level of financial disclosure
required.
We suggested to the group’s management that we carry
out an annual audit of the consolidated figures and agree
a form of words and a format for the accounts with which all
bankers dealing with the company would be comfortable. This
approach commenced in 2001 and has been instrumental in keeping
the banks and their analysts happy, and avoiding the endless
list of queries that the group was subjected to previously
on presentation of its figures.
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