Watertight Accounts

The Accounts of an engineering company and it's associated partnership involved in producing and selling pumping systems, were both selected for investigation on the ground that the gross profit percentage had varied over a number of years, and because the Inspector felt the drawings appeared low.

The operating procedures between the partnership and the company were very closely linked, and a very complicated and drawn out investigation followed. The Inspector required detailed explanations of entries in the accounts, and then wished to examine every invoice to ensure the accounts were correct. A significant number of meetings were necessary between the agent, the clients and the Inspector, in order to refute allegations of any wrong doing.

As a result of the accountant's continued involvement and expertise exercised throughout the enquiry, the investigation was settled with only one very minor add back. The accountant's costs for dealing with the investigation amounted to over £6,000.