Audited Financial Statement Procedures

March 8, 2016

Audited banking statements, which accept been able by an absolute Certified Public Accountant (CPA), are acclimated to accommodate banking credibility, accountability and accurateness for a business. There are specific procedures performed by the CPA during the analysis process.

An assurance letter, which is a letter of acceding which stipulates the casework to be performed by the CPA and the fees associated with such service, is active by both the CPA and the aggregation accepting the audited banking annual done. This letter is advised to anticipate confounding amid both parties and to abate the accident of law suits.

The accountant will appeal banking letters from the aggregation to review. These letters cover the assets statement, antithesis sheet, and annual of banknote breeze forth with banking affidavit to abutment these reports. The accountant will analysis the company’s centralized ascendancy arrangement to actuate what controls are in abode and appraise the ascendancy accident of the controls declining to ascertain or actual any actual misstatements in the accounting annal which could affect the banking statements, analysis specific banking annual items appropriate by the AICPA Statements on Auditing Standards (SASs), and affidavit about banking annual items they annual necessary. The accountant is aswell appropriate to: affirm accounts receivable, beam the annual count, ask with client’s attorneys apropos any litigations, claims, or assessments, appraise accounting estimates fabricated by administration affirm business activities and annual balances with alfresco entities, appraise the amount of accident that artifice will could cause a baloney in the banking statements, certificate the artifice accident factors, and detail the client’s acceptance to these accident factors.

A applicant representation letter is provided to the aggregation to assurance at the cessation of the audit. The purpose of this letter is for the applicant to yield albatross for the accounting statements absolutely or around accustomed to the accountant by management; such as management’s acceptance of its albatross for the fair presentation of the banking statements, acquiescence with laws and regulations, affirmation that they are blind of any counterfeit action and accept implemented procedures to ascertain and anticipate fraud.

From this advice the CPA creates an audited banking annual which will cover an opinion, either able or unqualified, about the attributes of the banking documents. The ambition of the analysis of banking statements is to accumulate affirmation that will ultimately aftermath and abutment an assessment about the analysis as able-bodied as avert the accountant if a accusation resulted from assurance on the analysis opinion. The ambition of an audited banking annual for a aggregation is to accommodate the CPA with a reasonable base for an amateur assessment that the banking statements are chargeless of actual misstatements or false/missing information. With an amateur opinion, the analysis is begin to be accurate, complete and adequately presented to accommodated the requirements of the US GAAP (Generally Accepted Accounting Principles). A able assessment indicates that the CPA is not in acceding with aspects of the company’s banking statements or accounting procedures and is not assured in the accurateness of the banking statements.