Director Loan Accounts
Find money lent to the directors or shareholders, the most outstanding in the year, and repayments timed around the year end.
- General ledger alone
- Key analysis in Equity & legal
How the result is read
A director’s or shareholder’s current account in debit is a loan from the company to the person who runs or owns it — a related party transaction (ISA 550, AU-C 550, FRS 102 section 33, ASC 850) and, depending on the jurisdiction, a regulated one. In the UK a loan above £10,000 needs the members’ approval (Companies Act 2006 s197), the accounts must disclose the advance, its terms and the largest amount outstanding in the year (s413), and a loan still unpaid nine months after the year end carries tax at the dividend upper rate (CTA 2010 s455); repaying it just before the year end and drawing it again within 30 days does not count (s464C). In a French SA or SARL a loan or overdraft to a director is prohibited (Code de commerce L.225-43, L.223-21). The accounts are found by their names — the chart’s number says only that they sit among the debts.
In the application
Director Loan Accounts is filed under Equity & legal, index letter J. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under J, beside an index of the source files with their SHA-256 fingerprints.
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Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required