Discussion:Audit Initial Period Balance Sheet

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Accounting Questions --> Audit Initial Period Balance Sheet

Diego (talk|edits) said:

7 April 2010
I am auditing just a balance sheet for a potential franchise operation, the have to file with states. Simple $100k member contribution and cash. Year end is December. Is there a problem with issuing an opinion as at March 31, 2010. Is a special disclosure required such as that for interims?

An opinion would be appreciated.

Natalie (talk|edits) said:

April 7, 2010
? Auditing a balance sheet as of March 31, 2010? That's it? It sounds like an easy job. You'll just need to modify your report to indicate you're only auditing the balance sheet and not any other statements. Balance sheets only indicate financial position on one day, so there's no issue with periods (year, month, etc.). Note that all of the required disclosures are still needed in the notes to the balance sheet.

Rkrcpa1 (talk|edits) said:

8 April 2010
I did one of these years ago and seem to recall something about Development Stage Companies and additional disclosures. It turned into much more than the simple audit you would have expected. Cost a whole boatload of money too, client was not happy. I will say that we may have done an income statement also but either way it was a short period and if I remember correctly only one check had been issued during the period. But, he needed audited statements in order to offer franchises in California so he paid the money.

To join in on this discussion, you must first log in.
Personal tools