Thursday, November 12, 2009

The Story That Tells the Power of Audited Financial Statements

By Neil Rischall

Most potential clients that request audited financial statements do so because they feel compelled to have their accounting examined by a CPA. This could be do regulatory oversight such as the SEC or NASD or PCAOB for public companies that are traded on the major stock exchanges or involved with the business perhaps as stock brokers. Some feel compelled because they are required by the government such as non profits or those that deal with Housing and Urban Development. Others must get audited in order to get or comply with a bank loan they are seeking or have.

The most common question that those that are compelled to get their books reviewed is "How much this will cost?". Due to such questions I have devoted pages on my web site to give people comfort and knowledge about how to figure out what audited financial statements will cost. In addition I make myself available for free consultations via the phone or email to give those that are curious an answer to their questions.

Though I am often disappointed that so many people in business fail to understand the power of audited financial statements and what they provide besides compliance with outsiders that require them. That what is being provided is not just a letter stating an opinion without any further value.

When I was wet behind the ears and not even certified as a Certified Public Accountant something happened in the CPA firm that I worked that brought out the point that I am trying to make. The firm I was working for was engaged to do the audit of a brokerage firm that had offices in Manhattan ( in fact quite close to Wall Street and the World Trade Center ). Even though our firm was fairly small we always brought in as many people as possible on the first day of an audit in order to make a good impression. Well it seems that we made a very big impression on one of the employees of the brokerage firm. The reason I know that is that within a short time after our arrival this employee admitted to a major fraud that he had stolen a significant amount of money from the brokerage firm's clients.

Many visitors of my site have been pleased to become more educated about the services that a CPA can provide for them as well as getting their own specific questions answered.

Neil Rischall is the CPA behind the CPABookkeepers site there you can sign up for some email lists about audited financial statements that can save you significant money. As well as finding out about services provided by a CPA Firm.

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