Discussion:NON CPA PREPARING REVIEWED FINANCIAL STATEMENT
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
(Difference between revisions)
| Revision as of 15:05, 23 March 2007 Gosix (Talk | contribs) (Yes there is mor) ← Previous diff |
Revision as of 16:23, 23 March 2007 KLRJR16 (Talk | contribs) (Thanks everyone,) Next diff → |
||
| Line 31: | Line 31: | ||
| When in doubt, just label it immaterial.}} | When in doubt, just label it immaterial.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=KLRJR16|Date=23 March 2007|Text=Thanks everyone, I found my citation. Non licensed individuals cannot perform attestation services in just about every state. | ||
| + | |||
| + | Natalie, don't waste your time trying to match wits with Gosix. He/she is unarmed. | ||
| + | |||
| + | }} | ||
Revision as of 16:23, 23 March 2007
Discussion Forum Index --> Accounting Questions --> NON CPA PREPARING REVIEWED FINANCIAL STATEMENT
| 22 March 2007 | |
| I just lost a bid for a reviewed Financial Statement to a non cpa accountant. I told the client that they are not allowed to prepare attestation statements if they are not CPA's. I cannot find this anywhere specifically in the code of ethics and the client wants some type of documentation. Help please.The statement is used for outside parties. I am in Rhode Island if that makes a difference. Thank you. | |
| 22 March 2007 | |
| Maybe I am out of the loop, but I have never heard of this. As a non CPA I have prepared many financial statements for my clients. But, then again I have never heard of bidding out CPAs/accountants for work either.
Kevin, JR, anyone....? I am curious. | |
| 22 March 2007 | |
| From what I know compilation and auditing/attestations are different animals :P Is your client a public or private firm? | |
| March 22, 2007 | |
| Who is requesting that reviewed financial statements be prepared? If it is a third party, then you or the client could ask them what they are expecting. In my experience, outside parties expect audits and reviews to be performed by CPAs. One of the reasons they do so is because they know CPAs have to follow certain "rules" (standards) when they review or audit statements. Since this accountant is not certified, what standards would he or she be using to do this review? My guess is probably none, which is why the bid came in lower. | |
| 22 March 2007 | |
| State law determines who can practice "accounting", and usually reserves the terms "audited" and "reviewed" for licensed accountants (some states have more than 1 tier of license). So in many states, non-licensed individuals can perform compilations, but not reviews or audits. | |
| 22 March 2007 | |
| Audited and reviewed. What a farce, and what a state lobbying effort by CPA's.
Reconcile a few accounts, confirm a few balances, spot check some inventory, pull a few invoices, confirm a couple recievables, review some loan docs, etc. Here's the bill................... By the way, which intern or fresh out of college new hire is going to do this auditing and reviewing under the "supervision" of the 3 year ago grad? | |
Hellothere (talk|edits) said: | 22 March 2007 |
| In Washington state a non-CPA cannot use the terms review, audit or compilation. WA State Board of Accountancy provides a non-CPA with a "Safe Harbor Language" to use with their reports. http://www.cpaboard.wa.gov/rules/Policies/safeharborplcy.html | |
| 22 March 2007 | |
| In FL, you cannot compile a reviewed or audited financial statement unless you are a CPA. Compilations are ok, but you are not allowed to review or audit the financial statements and cannot use the terms in your letter accompanying them... | |
| March 23, 2007 | |
| Gosix, there's quite a lot more (and less -- client usually reconciles the accounts) to auditing and reviewing financial statements than you make it out to be.
Hellothere, thank you for the link. It's nice to learn about other state laws. Sandy, thanks for your input, too. (I couldn't leave you out now, could I?) | |
| 23 March 2007 | |
| Yes there is more, I forgot the most valuable lesson learned.
When in doubt, just label it immaterial. | |
| 23 March 2007 | |
| Thanks everyone, I found my citation. Non licensed individuals cannot perform attestation services in just about every state.
Natalie, don't waste your time trying to match wits with Gosix. He/she is unarmed. | |
