February 21st, 2010 by admin
Does your company need to present your stakeholders with an accurate report on your financial performance? The best way to prove your company’s financial credibility and accountability is to present your stakeholders with an audited financial statement.
There are three easy steps to obtain an audited financial statement for your company. First, contact an independent Certified Pubic Accountant (CPA). The CPA will then advise you on how to prepare for an orderly and efficient audit. Second, collect the information requested by the CPA and submit it to them. The CPA will examine documents which support figures within your company’s financial statements, assess the accounting principles used, and evaluate the financial statement presentation. From this information the CPA will create an audited financial statement for your company. The audit will give your stakeholders an unbiased opinion, either qualified or unqualified, regarding the nature of the financial statements and practices within your company. Lastly, review your audited financial statements, contact your CPA if you have any questions regarding the audit, and then submit the audited financial statements to your stakeholders.
An unqualified opinion indicates that the audit is found to be accurate, complete and fairly presented to meet the requirements of the US GAAP (Generally Accepted Accounting Principles). The audit provides the CPA a reasonable basis for their opinion that the financial statements are free of material misstatements or false/missing information. A qualified opinion indicates that the CPA is not in agreement with aspects of the financial statements and/or methods used to prepare their financial documents. A qualified opinion indicates that the CPA is not confident that the financial statements are correct or accurate. If no opinion is given, this usually indicates that a company needs to improve their accounting practices so they can meet the requirements of the US GAAP (Generally Accepted Accounting Principles) before an audit can be performed.
November 7th, 2009 by admin
What is the difference between an accountant and a Certified Public Accountant (CPA)? An accountant usually majors in accounting in college. In order to become a Certified Public Accountant, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
Only a Certified Public Accountant (CPA) can prepare audited financial statements on behalf of a business or non-profit organization. Audited financial statements are used to provide financial credibility, accountability and accuracy for a business. These audited financial statements help provide a basis for various business decisions to be made within and regarding a company. The purpose of audited financial statements is to provide interested parties The CPA will certify with a reasonable assurance that the company’s financial statements are free of material misstatements or false/missing information and meet the requirements of the US GAAP (Generally Accepted Accounting Principles).
A CPA can also prepare a reviewed financial statement. A reviewed financial statement is less involved and complex then an audited financial statement, though some testing is performed to verify information found in the financial statements. A report is created by the CPA which describes findings and limitations of the review. The only financial statement that a non-certified accountant can prepare is a compiled financial statement. A report is issued with the complied financial statement which indicates no audited or review methods were used, and the financial statements were compiled using only information provided by the business.
Audited financial statements are the most professional and accepted method to report financial accountability and accuracy to a company’s shareholders, bankers, creditors, government, and any other people with interest in the company.
September 15th, 2009 by admin
How can you be sure that financial statements within a company are accurate? Audited financial statements, which have been prepared by an independent Certified Public Accountant (CPA) on behalf of a business or non-profit organization, are used to provide financial accountability and accuracy to a company’s stakeholders. The documents used by an accountant to prepare audited financial statements are provided by the company, and include various financial documents such as accounts receivable/payable documents, budgets, expense reports. The CPA examines documents which support figures within the financial statements, assesses the overall accounting principles used, and evaluates the overall financial statement presentation. From this information the CPA creates an audited financial statement.
Within the audited financial statement, the certified public accountant provides an opinion, either qualified or unqualified, about the nature of the financial documents. An unqualified opinion in an audited financial statement indicates that the CPA is in agreement with the methods used by the company to prepare their financial documents. The audit is found to be accurate, complete and fairly presented to meet the requirements of the US GAAP (Generally Accepted Accounting Principles). The audit provides the CPA a reasonable basis for their opinion that the financial statements are free of material misstatements or false/missing information.
A qualified opinion indicates that the CPA is not in agreement with aspects of the financial statements and/or methods used to prepare their financial documents. A qualified opinion indicates that the CPA is not confident that the financial statements are correct or accurate.
Occasionally an opinion will not be given within an audited financial statement. This could be due to the fact that there were insignificant documents available to properly prepare the audit, or there were issues that need to be addressed before evaluating the accuracy of the financial documents. A lack of opinion usually indicates that a company needs to improve their accounting practices so they can meet the requirements of the US GAAP (Generally Accepted Accounting Principles).
