AICPA white paper on internal use-only financial statements


Accounting:

FASB Summaries
FASB Exposure Drafts
GASB Summaries
GASB Exposure Drafts
AICPA White Paper

Taxation:

Federal Tax Forms
New York State Tax Forms
New York City Tax Forms
Other State Tax Forms
Tax Acct. & Regulatory Bulletin

Ethics & Regulation

Code of Conduct
Briefing Book on Issues

Risk Management

Peer Review Summaries
Risk Mgt.& Liability Guidebook

Bookshelf

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Forensic & Litigation Svcs. Directory
Career Opportunities Handbook

Appendix A

Description of Assembly Service as Excerpted From the "Pigs Are Flying in Florida" Speech by Lloyd "Buddy" Turman, Executive Director of the Florida Institute of CPAs

Assembled financial statements provide for the output of manual or automated bookkeeping or data processing services in the form of financial statements. The function of assembling financial statements includes preparing a working trial balance, assisting in adjusting the books of account, and consulting on accounting matters. The accompanying transmittal letter must be prepared on the issuing entity’s letterhead (whether the entity is licensed or unlicensed by the Florida Board of Accountancy).

The term "offer to perform or perform services involving assembled financial statements" applies to actively licensed CPAs who perform one or more types of services involving the preparation of assembled financial statements. These services include:

1. Being in charge of the engagement; or
2. Reviewing the workpapers or financial statements; or
3. Supervising the engagement; or
4. Being the only licensee involved with providing services involved

in the preparation of financial statements.

CPAs performing assembled financial statements must comply with the following standards:

• Establish a written understanding with the entity (i.e., mandatory engagement letter).

• Comply with the general standards of professional competence and due professional care.

• Adequately plan and supervise the engagement and obtain sufficient relevant data to form reasonable conclusions.

• Any language or style similar to that used in SSARS reports shall be avoided.

• No expression of any form of opinion or assurance shall be given.

• Assembled financial statements shall be accompanied by a transmittal letter and free from obvious material errors.

• The date of completion of the assembled financial statement(s) shall be used as the date of the transmittal letter.

• The transmittal letter shall include the name and license number of the CPA.

In addition, the following language shall be included in the transmittal letter and on each page of the assembled financial statements:

These assembled financial statements are not prepared with an expression of any form of opinion or assurance and they are prepared by an entity that is (is not) licensed by the Florida Board of Accountancy.

Finally, the transmittal letters shall disclose any lack of independence and may include comments of a business advisory nature which the CPA wishes to draw to the client’s attention.

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