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What is considered professional courtesy in regard to information given to a new auditor, asking for ethical clearance?
The new auditor asked standard questions such as "Is there any ethical reason why I should not accept the appointment", "Was the fund qualified last year, was an ACR lodged, please provide a copy of the report if so".
But in addition has asked for 12 other documents such as signed financials for prior years, minutes, trust deed, commencement documents. Documents decades old in some cases.
I have never experienced such a lengthy request and it seems a bit excessive to me.
What is considered reasonable?
Thanks in advance.
My view is different. As an auditor who has finalised the previous years work you would have sent a Management Letter and Audit Report. These would have been based on the financials provided by the Accountant you were working with. Are not Trustees required to keep documentation for 10 years. In my representation letter they sign off on the fact they have done so. It is not our responsibility to act as a filing system for lazy clients. If they really need it, charge them a fair fee for your time and effort involved, but do not be excessive.
Hi Clare
Thanks, there are different views in the industry as some accountants / auditors advise that all documentation has been provided to the client and the new accountant should request the information directly from the client.
My view is that it is reasonable (& professional courtesy) to provide the following in relation to an ethical request re an SMSF audit:
1) Prior year audit report
2) Prior year signed financial statements
3) Trust deed (if held by the auditor)
If other information can be easily provided it should be provided.
If you are of the view that the request is unreasonable I would refer them to the trustee (or accountant) to get this information.
Regards
SMSF AAA