• Welcome to the ShrimperZone forums.
    You are currently viewing our boards as a guest which only gives you limited access.

    Existing Users:.
    Please log-in using your existing username and password. If you have any problems, please see below.

    New Users:
    Join our free community now and gain access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features. Registration is fast, simple and free. Click here to join.

    Fans from other clubs
    We welcome and appreciate supporters from other clubs who wish to engage in sensible discussion. Please feel free to join as above but understand that this is a moderated site and those who cannot play nicely will be quickly removed.

    Assistance Required
    For help with the registration process or accessing your account, please send a note using the Contact us link in the footer, please include your account name. We can then provide you with a new password and verification to get you on the site.

Lester Bangs

Manager
Joined
Apr 19, 2007
Messages
1,883
So I was thinking last night about the reason that the embargo was in place was that the Accountants would not release the completed Financial Statements until they had received payments (and rightly so, they aren't a charity and they provided a service).

Now this got me worried again as it appears that we are unable to pay our debts as and when they fall due, this ultimately means that the Sainsburys money we drew down on must have been spent already and our cashflow position is diabolical again.

Then the thought occured to me that maybe we could afford to make payment, after all our cash position can't be so bad that we can't afford to pay them right, RIGHT? but for some reason we were withholding payment, this appeased me as it meant that our cashflow was not so bad that we couldn't make payment we just weren't happy with the service that we were being provided and have decided not to pay.

That then got me thinking, well if this was the case what weren't we happy with? The preparation of the Financial Statements? No, that should be easy enough and shouldn't provide controversy. The Audit? Possibly, are the auditors going to qualify the report? Maybe on a going concern basis? Lastly the disclosures? There could be ample reason why there could be disparaging disclosure and this could be a reason for wanting the accounts to be changed.

Obviously this is all conjecture and just my thought process but I was wondering what people though was the better scenario:

1) Not having the money in the first place to pay the Accountants for the work they've undertaken.

2) Witholding monies in an attempt to get the Financial Statements changed and to avoid harmful disclosure or a qualified audit report as the club felt the disclosure were misrepresentative?

Again, I must stress that this scenario is purely fictional just thinking when I worked in Practice that the main reason Accountants didn't get paid wasn't due to the client not having the money but witholding money and the holding the firm to ransom as they were unhappy with what was being reported.
 
Top