Introduction to accounting requirements of the companies act

This section details the requirements on the
keeping of accounting records by companies.

The basis for this is, as might be anticipated, set
out in the companies act 2006. This lays down the minimum requirements for the
books and records a company has to

keep.

Auditors must know these rules because, as you will
remember from a previous chapter, one of the duties of the auditors is to carry
out investigations to enable them to form an opinion on whether the company has
kept proper accounting records and has proper returns from any branches not
visited by the auditors.
Further, if they form an opinion that the company
has not kept proper accounting records, they have to say so in their report.
The word ‘proper’ here means in accordance with custom or appropriate to the
circumstances.

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