The extracts provided in this case indicate different ways in which the quality of financial statements is ensured.

Common errors

The main reasons given for rejection of accounts by Companies House are:

- incorrect or missing statements, i.e. wrongly stating that the accounts have been prepared according to the relevant legislation;
- audit exemption statements missing or incorrect;
- duplicate made up date i.e., accounts show same date as previously filed accounts;
- signatory name missing off balance sheet or balance sheet signature omitted; and
- accounting reference date/made up date absent or incorrect.

Going concern

In June 2012 the Sharman Panel of Inquiry published its final report and recommendations on Going concern and liquidity risks; lessons for companies and auditors. Its recommendations include the reporting of going concern status:

Recommendation 4

The Panel recommends that, in taking forward its work on reporting under the ECS [Engaging Company Stewardship initiative], the FRC should move away from a model where disclosures about going concern risks are only highlighted when there are significant doubts about the entity's survival, to one which integrates going concern reporting with the ECS proposals through seeking to ensure that:

a) the discussion of strategy and principal risks always includes, in the context of that discussion, the directors' going concern statement and how they arrived at it; and

b) the audit committee report illustrates the effectiveness of the process undertaken by the directors to evaluate going concern by:

i. confirming that a robust risk assessment has been made; and

ii. commenting on or cross-referring to information on the material risks to going concern which have been considered and, where applicable, how they have been addressed;

Discussion points

1 Which regulatory bodies and processes are mentioned in these extracts?

2 Would you expect to be assured about the going concern status of any company accounts that are accepted for filing at Companies House?