Accountancy - Unaudited accounts - Sent to Revenue

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cmalone

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Query re. accountant stating that accounts prepared for Revenue for small business are unaudited- notwithstanding that they receive full records/ receipts/ payments/ etc and compile accounts from start to finish.

Why are they not audited?
 
Why would you want your accounts audited? Some 96% of Irish companies are audit-exempt and most of not all of them are mightily glad of the exemption.

Auditing is an expensive bureaucratic process that places a heavy compliance burden on both the auditor and the company being audited.
 
Because they're not legally required to be, I'd imagine.

The vast majority of audit work carried out by accountancy practices, is statutory audits (ie audits required by law, due to the size of the company, the legal form of the entity, or due to previous accounts being filed late to the CRO).

Compiling a set of accounts based on the bookkeeping records is not the same as an audit.
 
Audited accounts

Thank you kindly for reply. Yes agreed auditing is not a requirement, but for the limited number of transactions that are all viewed by the accountant, I am surprised that the accounts could not be classified as audited- turnover 100k.

Accountancy fee 2000 euro
Payroll processing fee 2000 euro
 
cmalone said:
Thank you kindly for reply. Yes agreed auditing is not a requirement, but for the limited number of transactions that are all viewed by the accountant, I am surprised that the accounts could not be classified as audited- turnover 100k.

Accountancy fee 2000 euro
Payroll processing fee 2000 euro
Click to expand...

What did you engage the accountant to do? Are you saying you asked for an audit and didn't get one?

Otherwise you're like someone who walks into a restaurant, asks for beef, and then after the food arrives starts asking, "hold on, this isn't a rib-eye?!"...
 
cmalone said:
Thank you kindly for reply. Yes agreed auditing is not a requirement, but for the limited number of transactions that are all viewed by the accountant, I am surprised that the accounts could not be classified as audited- turnover 100k.

Accountancy fee 2000 euro
Payroll processing fee 2000 euro
Click to expand...

Is the business a limited company? If it is not, it can't be "audited".

If it is a limited company, there are exemptions and your accountant will advise whether you need an annual audit.
 
Audit

Fully aware of the differences, but sense that accountant is getting off with simply doing a book-keeper's job by compiling accounts and marking them as 'unaudited'- why does he have to mark anything on them at all?

Do the Revenue view accounts submitted by an accountant as better?
 
cmalone said:
Fully aware of the differences, but sense that accountant is getting off with simply doing a book-keeper's job by compiling accounts and marking them as 'unaudited'- why does he have to mark anything on them at all?

Do the Revenue view accounts submitted by an accountant as better?
Click to expand...

What makes you think the accounts go to Revenue?

Normally the accountant files a tax return, with extracts from the accounts.

The accounts (in an abridged format) go to the CRO if its a company.

With respect you clearly don't understand the standard engagement between an accountant and a client, this may be partly your accountant's fault for not explaining everyone's respective obligations and what they would be charging you for doing.
 
Accountant

Thank you for clarification- You are quite correct, we are not legal/ accountancy professionals- and like using this website for everyone's advice, etc

The simple point is that Revenue are fully aware that we have engaged an accountant, given that he submits returns online as an agent- Question - Is this better than filing the return online ourselves? How do Revenue view use of an accountant when selecting cases for audit by themselves?

Many thanks
 
cmalone said:
Thank you for clarification- You are quite correct, we are not legal/ accountancy professionals- and like using this website for everyone's advice, etc

The simple point is that Revenue are fully aware that we have engaged an accountant, given that he submits returns online as an agent- Question - Is this better than filing the return online ourselves? How do Revenue view use of an accountant when selecting cases for audit by themselves?

Many thanks
Click to expand...

Revenue's REAP risk system flags risks based on the items contained in the return, irrespective of who files it.
 
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