LLPs have been available as new business entities since 6 April, 2001. So far conversion rate to date has been slow, partly because of uncertainty over the accounting requirements for LLPs. A major step towards the resolution of this was taken in late July, when the Consultative Committee of Accountancy Bodies issued a draft Statement of Recommended Practice (Sorp) on the accounting issues, which is open for comment until 31 October, 2001.
Generations of lawyers have obscured the distinction between accountants and auditors. When partners in legal firms refer to their auditors, they usually mean their external accountants – the people who prepare or review the partnership’s accounts, advise on tax and complete the Accountant’s Report Rules certificate relating to the client accounts system.
