Background:

The Director and Company Secretary of x company also own, and are Directors / Company Secretaries of y companies (there may also be other Companies or trading names that they are using) all of which have a similar Raison d’etre as x company

A conflict of interest exists and there is already evidence of funds and activity being diverted to these other companies with the consequential loss to our company.

X company is the trading company whilst z company is a dormant company. Company turnover is less than £60k

Due to this Director not submitting accounts for a 2 year period x company was struck off and we had to trade as a non limited company. The accountant and I resolved this issue and had the company reinstated. You need to be aware of this but it is not part of the investigation

Purpose:

The purpose of the audit is to establish the extent of any conflict in terms of both its direct and consequential impact on financial (and possible operational) issues.

Requirements:

To initially look at the last 4 years accounts and supporting documentation to specifically but not wholly concentrate on looking for:

• Evidence of funds being diverted or delayed being paid into our bank account(s).
• Evidence that they have used other bank accounts to process funds destined for our bank account.
• Evidence that proceeds from the Sale of Beach Huts, Commission on the Sale of Beach Huts and or Rental Income has been diverted away from us.
• Small sample check of Beach Hut Sales to confirm that the sales price realised agrees to the bank credit and that payments have not been diverted
• Small sample check of commission payments (as above)
• Company X being invoiced for services by any of their other companies.
• Evidence pf payments / costs being passed between the two companies
• Their personal expenses to be looked at in terms of their other companies activities
• Any evidence of funds being diverted to reduce tax liabilities

Audit Requirement

Amount of Time
• Two days to inspect accounts and supporting evidence
• Possible 1 day for further investigation
• 1 day for Report
• Location Surrey / Sussex

Report:
• covering the points in the requirement section above
• collating financial loss to X company
• highlighting any Consequential losses
• providing evidence of any funds being diverted to reduce tax liabilities
• with recommendations if corrective action needs to be taken

Auditor Experience
• Previous experience of conducting this kind of audit
• Possible need to provide a reference


Directors

Project Type : Fixed Price Project

Budget Range : £1000-£1500

Budget Type : Fixed Fee

Approx Start Date after bid is selected : Within one month

Attached files : None