Patrick O Donovan Accountants

Audit & Accountancy

Accountancy Service

Historically accounting has preceded Christianity and dates from the ancient Mesopotamian cultures. It was further advanced by the famous Medici family of Florence as a method of recording their trading activities with the merchants of the 14th century. This is the period that has given us double entry book-keeping. It has developed from there to what we have now.

The accounting standards and auditing standards are contained in 2 volumes issued by the IASB International Accounting Standards Board (IASB) and the Auditing Practices Board. Both volumes are in excess of 2000 pages. On reviewing them the average business will find that a large amount of the standards will not be applicable to their particular business. However given the complexities of modern commerce large proportions will. The modern approach to these standards has been to issue guidance and less prescriptive than previous standards, however there will be continuing changes given the number of accounting/auditing scandals that we are bombarded with on an annual basis. These include the following:

CompanyYearAudit FirmCountryNotes
Anglo Irish Bank2008Ernst & YoungIrelandHidden Loans
Satyam Computers2009PWCIndiaFalse Accounts
Lehman Bros2010Ernst & YoungUSAFailure to disclose Repo 105 Transactions to Investors
Olympus Corporation2011Ernst & YoungJapanTobashi using acquisitions

These may have little relevance from an accounting point of view to most medium to small companies, (however the Anglo Irish issue detrimentally affects all businesses in Ireland today). However it is important that all transactions that affect the business are recorded correctly and in accordance with the relevant standards and Tax legislation and Companies legislation.

Proper recording of transactions are the key to a management information system and tax compliance. It is important management are able to keep their finger on the pulse of the business. Being a director of a company has even further implications under the Companies Acts 1963 to 2009. Insolvency and cash-flow issues are lurking in the shadows of what used to be very profitable business only a year or two ago.

In order to make timely decisions it is important to have monthly management accounts that are prepared on a consistent basis and in line with standards. This is why it is imperative when preparing accounts or carrying out book-keeping one has access to suitably qualified persons with the requisite knowledge. One must be able to judge at the drop of a hat the tax, accounting, Company Law and cash flow implications of transactions. One must have adequate assurance that all assets and liabilities have been reflected in the company Balance Sheet/ Statement of Financial Position. One must have assurance that the Profit and Loss Account/ Statement of Comprehensive Income reflects all income and costs. The Revenue, Companies Office, Financial Regulator and ODCE will expect directors of companies to be able to make management decisions on accurate information, and expect information provided to them to be accurate. Non compliance can have expensive and increasingly legal repercussions.

Audit Service

We carry out and design our audit to provide clients with a comprehensive understanding of their business and in order to make it relevant to the directors and shareholders/ investors of a company. We carry out our audits in accordance with current auditing standards whether Irish and UK, US GAAP or IFRS are used in preparing the accounts.

We are committed to quality control of the audit and the quality of the information the Financial Reports provide. Key focuses of the audit will be the going concern principal, liquidity, recovery of debts, and the comprehensiveness of the liabilities stated on the Financial Reports.

To discuss any of the above services or to enquire about other services contact us on (051) 304156 or visit our contact us page.