Financial Statements

In the current economic and business environment, you may be asked to provide financial statements by a bank, leasing company, or vendor. The financial statements are those of the company, business, or individual, and not those of the CPA. Therefore, I work with my clients to assist them to understand the financial statements and what the lender will see.

The lender will generally ask the CPA to provide a level of comfort concerning the financial statements presented by the company or business. The primary objective is to present the financial statement in accordance with generally accepted accounting principles. The levels of attestation by the CPA that may be requested are:

The CPA does not express an opinion or assurance on the financial statements. The fees for this service can range from $300 to $1,000.

The CPA provides limited assurance that the financial statement are fairly presented and there are no major departures, unless noted, in generally accepted accounting principles and there are no material misstatements in the financial statement. The CPA performs some analytical procedures but does not perform test of accounting systems, records, or transactions. The fee for this service can range from $1,500 to $7,500.

This is the highest level of service. The CPA opines on the financial statements including any required disclosures. The CPA will perform limited test of accounting systems, procedures, and account balances. Audit fees can range form $5,000 to $50,000 or more.

Personal Financial Statements
Any of the above attestations services can be applied to personal financial statements. However, generally the compilation service is what is requested. Personal financial statements are governed by accounting principles designated for such statements.

Other Financial Statements
At times you may be asked to prepare financial statements based on prescribed forms or formats. The most common type of these financial statements is accounting summaries for trust. Again, the compilation level of service is the most common service requested.

Fee Estimates
I will be glad to provide you with an estimate of the fee associated with any of the above levels of attestation service for your financial statements. Please provide me with a copy of your trial balance and/or internally prepared financial statements.