HENDON & SLATE RESPONSIBILITIES DOCUMENT
Objectives of the Engagement and Services to be Performed
We provide the bookkeeping and tax services outlined below:
At
the end of each appropriate period (monthly, quarterly and/or
annually), Hendon & Slate agrees to perform the following functions:
- Post coded transactions to the company/organization’s general ledger
- Propose adjusting or correcting journal entries (as found in the general ledger) to be reviewed and approved by you
- Prepare a trial balance based on the adjusted general ledger
- Prepare sales and payroll tax returns
-
Prepare federal and state income tax returns
-
Answer inquiries on specific tax matters
Hendon
& Slate will not perform management functions or make management
decisions on your behalf. However, we will provide advice and
recommendations to assist management in performing its functions and
making decisions.
Your Responsibilities
You
agree to perform the following functions in connection with Hendon
& Slate’s provisions of the bookkeeping and tax services:
-
Make
all management decisions and perform all management functions,
including determining account codings and approving all proposed
journal entries (which are provided to you either in the general ledger
or a separate document and assumed to be approved, unless we are
contacted with changes);
-
The
owner/shareholder (or other assigned personnel, as appropriate) will
oversee the bookkeeping and tax services and evaluate the adequacy and
results of the services;
-
Accept
responsibility for the results of the bookkeeping and tax services,
including the journal entries, general ledger, trial balance, and tax
returns; and
-
Establish and maintain internal controls over the bookkeeping and tax return preparation processes.
Hendon & Slate’s Responsibilities and Limitations of the Engagement
Hendon
& Slate will perform the services in accordance with applicable
professional standards, including the Statements on Standards for Tax
Services issued by the American Institute of Certified Public
Accountants.
This engagement is limited to the bookkeeping and tax services outlined above. Hendon
& Slate, in its sole professional judgment, reserves the right to
refuse to do any procedure or take any action that could be construed
as making management decisions or performing management functions,
including determining account codings and approving journal entries. Hendon
& Slate will advise you with regard to tax positions taken in the
preparation of the tax return, but you must make all decisions with
regard to those matters.
The
accounting industry is being called upon by Congress and the financial
community to help “tighten the reins” of corporate governance.
New
rules, commonly referred to as “Sarbox” (after Sarbanes Oxley
legislation), primarily involve large SEC registered businesses. However, there are provisions that have now become effective for all businesses and their accountants.
Because
we provide you with a financial statement and perform other services
(such as preparing income tax returns, payroll reporting, etc.), we are
required to provide the enclosed responsibility document under new
guidance from the American Institute of Certified Public Accountants
(AICPA). There are no changes to any services we
are currently providing; however, this document is to notify you of our
respective responsibilities. Please review the enclosed information and feel free to contact our office if you have any questions or concerns regarding it.
Please also find enclosed “Our Commitment to Each Other ” document. We do hope you have found our past services to live up to these commitments and strive to continue to exceed your expectations.
Thank you.
Hendon & Slate, P.C.
Certified Public Accountants
“Coming together is a beginning,
Keeping together is progress,
Working together is success.”
