Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

Is there a basic template letter that I can provide to a client

with a copy of the...
Is there a basic template letter that I can provide to a client with a copy of the financials statements that we have produced on their behalf. They are presenting them to an attorney for an investment with his client. They want it to be known that a third party had prepared them. It is not an audit or a review
Show More
Show Less
Ask Your Own Finance Question
Answered in 14 minutes by:
7/19/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 13,240
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor :

Hi,

NPVAdvisor :

Here's something that I pulled some years ago from a group of Word templates ... tell me what you think:

NPVAdvisor :


[Appropriate Salutation]



We have compiled, from information you provide, the [monthly, quarterly, or other


frequency] financial statements of XYZ Company as of and for the year ended


December 31, 20XX.



The objective of a compilation is to assist you in presenting financial infor-


mation in the form of financial statements. We have utilized information that is


your representation without undertaking to obtain or provide any assurance


that there are no material modifications that should be made to the financial


statements in order for the statements to be in conformity with [the applica-


ble financial reporting framework (for example, accounting principles generally


accepted in the United States of America)].



You are responsible for



a. the preparation and fair presentation of the financial statements


in accordance with [the applicable financial reporting frame-


work (for example, accounting principles generally accepted in the


United States of America)].



b. designing, implementing, and maintaining internal control rel-


evant to the preparation and fair presentation of the financial


statements.



c. preventing and detecting fraud.



d. identifying and ensuring that the entity complies with the laws


and regulations applicable to its activities.



e. making all financial records and related information available to


us.



We are responsible for conducting these statements in accordance with State-


ments on Standards for Accounting and Review Services issued by the American


Institute of Certified Public Accountants.



This compilation differs significantly from a review or an audit of financial state-


ments. A compilation does not contemplate performing inquiry, analytical pro-


cedures, or other procedures performed in a review. Additionally, a compilation


does not contemplate obtaining an understanding of the entity's internal con-


trol; assessing fraud risk; testing accounting records by obtaining sufficient


appropriate audit evidence through inspection, observation, confirmation, or


the examination of source documents (for example, cancelled checks or bank


images); or other procedures ordinarily performed in an audit. Accordingly, we


will not express an opinion or provide any assurance regarding the financial


statements being compiled.



These statements cannot be relied upon to disclose errors, fraud, or illegal acts.




__________________________________


[Signature of accountant]


Acknowledged:


XYZ Company


_______________________


President


_______________________


Date


NPVAdvisor :

And finally, here's an article woth some other good guidelines .. but I believe th template here, (above) should serve your purposes here

NPVAdvisor :

I still don't see you coming into the chat, so I'll move us to the Questions and Answer mode ... Maybe that will help (We can still continue a dialogue there, just not in real-time as here)

NPVAdvisor :

Let meknow if you have questions

NPVAdvisor :

Lane

Ask Your Own Finance Question
Customer reply replied 4 years ago

It that the correct verbage for the conformity.....the financial reporting framework.....do I use what you said?


Hi,

If you don't feel, or are worried that you may not conform to GAAP or whatever you want to use as a standard, just take that out .. or again, use a standard that you feel safe the statements do comply with.

There's another similar statement that begins with"We are responsible..."

You can use or remove to the level that makes you comfortable ... you could also use a format statement rather than a standards statement, eg.,

"This is the format we use will all of our clients," or "We employ the format provided in the ABC accounting package," etc.

I think the hold harmless content is excellent... the conformity/standards statements can be (should be) changed to whatever your standard is... OR you don't have to speak to that at all.

Lane
Ask Your Own Finance Question
Customer reply replied 4 years ago

Ok...so I do not have to say the financial statements conform to any accounting prinicples.

Customer reply replied 4 years ago

We just prepared it with the information provided by the client. It is not a formal Compilation and I do not want to seem like we put alot of our own effort into it. Does that make sense?


The compilation is really the most BASIC level of service when it come to financial statements.

... there are no assurances being made other than it conforming to AICPA standards

Again, If you're saying that this is even below Audit, Review OR compilation, then I guess you could just use the disclaimer bullets themselves.

I don't think there's really a standard for something less than that.

Lane


Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 13,240
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Finance Specialists are ready to help you
Ask your own question now

Thanks as always!

Lane

Hope you're having a good one
Ask Your Own Finance Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 13,240
13,240 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I have a question related to how my taxes will be calculated
Hello. I have a question related to how my taxes will be calculated for my job overseas. For 2017, I don't qualify for the physical presence test as I was home for six weeks (42 days). Given this fact… read more
taxmanrog
taxmanrog
Master\u0027s Degree
768 satisfied customers
My employer has closed the defined benefits offered at our
My employer has closed the defined benefits offered at our company and offered to roll over to IRA and my current employer. They setup an IRA account that I could deposit the funds into. I have since … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I want to pay on my amazon prime account and I can't get to
I want to pay on my amazon prime account and I can't get to the account. … read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
1,920 satisfied customers
I had a dental appt on Dec 29th and wrote a check from my
I had a dental appt on Dec 29th and wrote a check from my HSA acct for $2000. Yesterday I received a 1099-sa from the bank. It does not reflect the $2000 check of course. is there anything I can do to… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,275 satisfied customers
Ethereum deposit question, I transferred some ethereum from
Ethereum deposit question, I transferred some ethereum from one exchange to erherdelta. Then I deposited the fund by putting the amount in the white deposit box and pressed blue deposit button. I forg… read more
Specialist Sean S.
Specialist Sean S.
Computer Support Technician
819 satisfied customers
Robin, question on filing taxes. My father in law passed
Robin, question on filing taxes. My father in law passed away about 4 years ago. He and his sister had a farm, and his 1/2 was willed to his 3 children one of which is my wife. My wife and I have take… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I started a partnership llc in Dec. 2016, I did my 1040
Hi, I started a partnership llc in Dec. 2016, I did my 1040 taxes for that year since it was only that one month. I need to file 1065 now, so my question is I only have one months worth of income for … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am a tax preparer ,but I have a PTIN only (so i am not an
Hello, I am a tax preparer ,but I have a PTIN only (so i am not an accountant or an Enrolled Agent). Can I apply for an EFIN (to be able to e-file returns)? In case I qualify for an EFIN,would this me… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,785 satisfied customers
I need to understand how to navigate the affordable care act
I need to understand how to navigate the affordable care act if I have little to no taxable income. My children receive SS payments from their retired father. I work part-time. My part time income for… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How to show in accounting books for checks written to
How to show in accounting books for checks written to oneself who an officer of the company does not run pay toll but take K1 at the year end of his own S corporation… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
63 satisfied customers
I have a PTIN only (so i am not an accountant or an Enrolled
Hi! I have a PTIN only (so i am not an accountant or an Enrolled Agent). Question:Can I prepare unlimited tax returns per year?or there is a limit in my case(higher designations are needes to be able … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
I would like to know what the value would now be of an
I would like to know what the value would now be of an annuity account that was opened in 2008 with an initial deposit of $78,835.00 and the only withdrawals from this account were the mandatory semi-… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Have some questions about my business for the coming tax
Have some questions about my business for the coming tax year as far as payroll vs. no payroll (because of the new LLC 20% tax rate) and retirement … read more
Carter McBride
Carter McBride
LLM
233 satisfied customers
I am single, divorced and own my home. 2017 my daughter and
I am single, divorced and own my home. 2017 my daughter and her family, 2 adults 3 children have lived with me while they build their home. They are custom home builders and file their own taxes. My q… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
I run a Delaware single owner LLC operating out of Arizona.
I run a Delaware single owner LLC operating out of Arizona. We earn hundreds of thousands annually. Given the recent reform in tax code, would we save a lot of money converting to an S Corp?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
Is the following link a Trustworthy app to invest in mutual
Is the following link a Trustworthy app to invest in mutual funds? https://robinhood.com/referral/ethanc123/?gclid=Cj0KCQiA-ebSBRC8ARIsAGuxJIrZH4jkVfJSxc_GvpqlOszZq2FrCQErIQv7hqqZLO1MuuQCFpH3fvAaAhB2E… read more
Carter McBride
Carter McBride
LLM
233 satisfied customers
I own 2 homes in Hammond in. Free and clear worth around
I own 2 homes in Hammond in. Free and clear worth around 150k, total. Right now they net around 24k - expenses (8k) year, haven't filed income taxes in while on them or ref job (lost 2 years ago) cred… read more
taxmanrog
taxmanrog
Master\u0027s Degree
768 satisfied customers
I started and run a non-profit youth swim team. I have the
Hello, I started and run a non-profit youth swim team. I have the parents on the team serving as the board of directors, along with myself as the president/director. I'm also the coach and only one wo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,785 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x