Statement of work template for professional services, All businesses, whether private, public, or non-profit, have to prepare financial statements in their performance to give financial accountability and accuracy to their stakeholders and individuals with an interest in the business. These statements allow management to make business decisions, enable creditors to evaluate loan applications, and provide individuals with information to make investment choices.
Financial statements provide information from an organization’s accounting records about their economic assets and duties on a specific date, as well as their financial activities over a time period. These statements are often prepared in accordance with Generally Accepted Accounting Principles (GAAP), that will be the criteria issued by the American Institute of Certified Public Accountants (AICPA), but they might also be prepared on other comprehensive basis of accounting, for example money basis or tax basis, depending on the requirements of the consumers.
A lawyer may compile the information provided by the customer to a suitable financial demonstration. This is the sole financial statement a non-certified accountant may prepare. The accountant will examine the invoices and issue a report. If the organization has elected to omit any disclosures, this has to be included in the accountant’s report of the financial statements, in addition to if the disclosures had been contained; they might have affected the consumer’s decisions.
The attorney preparing the accumulated financial statements are not necessary to validate or confirm the documents and do not have to analyze the statements for precision. However, an accountant engaged to market financial statements is required to get a general understanding of the organization’s business transactions, its accounting records, qualifications of the accounting employees, the accounting basis on which the financial statements are presented, along with the form and content of the financial statements. If any obvious material misstatements or missing information is mentioned, the accountant should discuss these items with the organization’s management for clarification or alteration to your statements, or withdraw from the engagement if management won’t give additional or revised information.
In compiled financial statements, the company, not the accountant, but is accountable for the accuracy and completeness of the financial documents. Since the statements were not audited or examined, they aren’t accredited by a Certified Public Accountant (CPA). No opinion or assurance is expressed in the report regarding if the compiled statements are free of material misstatements or even false/missing advice or if they are shown to be true, complete and fairly presented to meet the demands of the US GAAP (Generally Accepted Accounting Principles).