How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Category: Finance
Satisfied Customers: 12035
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

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

This answer was rated:

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

NPVAdvisor :


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


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


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]


XYZ Company





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 :


Customer: replied 4 years ago.

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


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.

Customer: replied 4 years ago. I do not have to say the financial statements conform to any accounting prinicples.

Customer: 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 and other Finance Specialists are ready to help you

Thanks as always!


Hope you're having a good one