Many lawyers have a poor understanding of what accountants and auditors do, how they are regulated and the rules that they have to follow. This note seeks to explain some of the fundamentals of the profession and describe the main issues that accountants and auditors cover in practical terms. The note focuses on audit, in particular, as it is the most likely regulated function where lawyers will deal with accountants.
This practice note explains the way that accounts are prepared, what the different elements of accounts are designed to achieve, the source of the rules governing their content and how they are applied in practice. It also deals with some common misconceptions about accounts that can lead to a misunderstanding about what accounts do and do not show.
This note considers the legal, regulatory and reputational risks arising from communications and all forms of document management, including monitoring and review, storage and disposal of documents, and document retention periods.