Financial statements provide advice from an organization’s accounting records about their economic resources and responsibilities on a particular date, in addition to their financial activities over a time period. These statements are often prepared according to Generally Accepted Accounting Principles (GAAP), that will be the standards issued by the American Institute of Certified Public Accountants (AICPA), but they could also be prepared on other comprehensive basis of accounting, such as cash basis or tax basis, depending on the requirements of their consumers.
A lawyer may compile the data provided by the customer into a correct financial presentation. Here is the only financial statement a non-certified accountant could prepare. The accountant will examine the invoices and issue a report. If the company has chosen to omit some disclosures, then this must be contained at the accountant’s report of their financial statements, in addition to if the disclosures were contained; they may have affected the user’s conclusions.
An amazing opinion in an audited financial statement indicates that the CPA is accountable for all the methods employed by the company to prepare their financial records. The analysis is proven to be accurate, comprehensive and fairly demonstrated to fit the requirements of this US GAAP (Generally Accepted Accounting Principles). The audit provides the CPA a fair foundation for their opinion that the financial statements are free from material misstatements or false/missing information. A professional opinion indicates that the CPA is not accountable for characteristics of the financial statements or methods utilized to prepare their financial records. A qualified opinion indicates that the CPA isn’t convinced that the financial statements are accurate or correct.
In compiled financial statements, the company, not the accountant, is accountable for the accuracy and completeness of the financial records. Considering that the statements were not audited or examined, they are not accredited by a Certified Public Accountant (CPA). No opinion or confidence is expressed in the accounts as to if the compiled statements are free from material misstatements or false/missing information or if they’re shown to be accurate, complete and fairly presented to satisfy the requirements of this US GAAP (Generally Accepted Accounting Principles).