Case Study: typical audit client
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.
Although the UK company falls within the turnover exemption, it is required to have an independent audit as it is part of a large 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 137 million, we found that the group's suppliers - and in particular its providers of trade finance - 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 satisfied, and avoiding the long list of queries that the group was subjected to previously on presentation of its figures.