Financial Reporting

Guidance on Financial Statements Preparation Engagements

Designed for IFA practising members the Guidance on Financial Statements Preparation Engagements providgeneral guidance on engagements to prepare financial statements for limited companies, partnerships and other entities which are exempt from the requirement to have their financial statements audited under relevant legislation.  

The guidance outlines the minimum requirements for an accounts preparation engagement. It is not exhaustive of any additional work or procedures that the practitioner might consider appropriate in the context of a specific engagement or that have been agreed with the client.   

It includes example accountant’s report for different entities. We recommend that the IFA accountant’s report is given where the practitioner or firm’s name is associated with the financial statements which have been prepared by them.   

We also recommended that a copy of the accountant’s report is filed at Companies House as this will increase the credibility of the financial statements filed at Companies House. This also applies to abbreviated financial statements.   

Other templates included in the guidance are procedural control record for financial statements preparation, example index format for a file, critical review of accounts template, and letters of management representations for different entities.