Cookie Consent by FreePrivacyPolicy.com

Here’s a Tip to see if you have a good accountant


Step 1 – give them loads of data e.g. 1 bankers box.  Your accountant will be delighted as we love data and we generally put it into a big spreadsheet with loads of complicated formulae.

Step 2 – ask them to review the data and give you their view, to empower you to make a decision.

You will know you have a good accountant if their response is on one page and gives you all the key information you need to make that decision.  The really good accountants will also give you benchmarks based on their experience.

There are many people attributed to this quote:-  “If I had more time, I would have written a shorter letter”.  Our team in Cooney Carey put in the time, effort and experience to provide concise, relevant and easy to read advise.

We think we are good accountants and thankfully many of our clients and peers agree.

If you have any queries in relation to the above please do not hesitate to contact a member of the Cooney Carey team at 01 677 9000 or by email at info@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

Share This Post:
  • email
  • Facebook
  • LinkedIn
  • Twitter
    Posted on September 10, 2020 by Cooney Carey

    What does an Auditor mean by “Materiality”


    An auditor will calculate a monetary value as the “materiality” level applicable to those financial statements he/she is auditing.

    The value will be based on the auditor’s professional judgement and their perception on the financial information needs of the users of the financial statements.

    The auditor will generally calculate materiality by applying a percentage value to a benchmark such as: Turnover; Assets; Liabilities; certain individual assets/liabilities; Profits; Equity.

    Once materiality is determined, the auditor will also calculate (a) Performance Materiality – normally 70-80% of materiality and (b) Trivial – normally 10% of materiality.

    During the course of the audit, the auditor will accumulate all detected errors and misstatements in excess of the ‘Performance Materiality’ value.  If these errors or misstatements, either individually or together, exceed the materiality value, the auditor will request that the financial statements are corrected.

    An auditor may also deem an error or misstatement material if it were to affect the following:

    • Compliance with regulatory requirements
    • Compliance with debt covenants or contractual requirements
    • Masks a change in a Key Performance Indicator
    • Has the effect of increasing management compensation
    • Relates to items involving particular parties
    • Disclosure of information users of the financial statements would require to understand the financial position of the reporting entity

    If you have any queries in relation to the above please do not hesitate to contact a member of the Cooney Carey team at 01 677 9000 or by email at info@cooneycarey.ie

    To keep in touch, connect with us on LinkedIn.

    Share This Post:
    • email
    • Facebook
    • LinkedIn
    • Twitter
      Posted on September 10, 2020 by Cooney Carey

      REDUCTION IN STANDARD RATE OF VAT


      Revenue have recently announced as part of the July Stimulus package a temporary reduction in the standard rate of VAT from 23% to 21%.  All other VAT rates will remain unchanged.

      This is due to take effect from the 1st of September and will remain in place until the 28th of February 2021. 

      While this is a welcome development businesses may face a number of issues and challenges in relation to the rate reduction.  It is important that businesses are ready for the change and that they review their operations in advance of the rate change. 

      Typical questions that may arise for businesses include:

      • Can the sales systems, including point of sales terminals, be updated to reflect the reduced rate?
      • Will the business need to adjust the price of goods/services provided to reflect the rate cut?
      • If the business pays their VAT liability by way of a monthly direct debit, does the rate reduction allow for a reduction in the monthly payment?
      • If the supply spans two periods with different VAT rates, the business will need to ensure that the correct rate of VAT is charged.
      • If an advanced payment has been received in respect of a supply, what is the correct VAT rate to be charged in respect of the supply?

      If you have any queries in relation to the above please do not hesitate to contact a member of the Cooney Carey tax department at 01 677 9000 or by email at info@cooneycarey.ie

      To keep in touch, connect with us on LinkedIn.

      Share This Post:
      • email
      • Facebook
      • LinkedIn
      • Twitter
        Posted on September 3, 2020 by Cooney Carey

        ← Older Posts