Discussion:CA CPA Engagements
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Discussion Forum Index --> Advanced Tax Questions --> CA CPA Engagements
Discussion Forum Index --> Tax Questions --> CA CPA Engagements
IDrinkYourMilkshake (talk|edits) said: | 27 August 2008 |
| I just need a verification that someone who is not a CPA should not be signing off on compilation reports in CA, or am I'm missing something? | |
| 27 August 2008 | |
| define 'signing off' please
inquiring whether that is the problem you are referring to, or whether you have an objection to the preparation of compiled statements by non-licensed individuals | |
IDrinkYourMilkshake (talk|edits) said: | 27 August 2008 |
| I have an objection with the later. I just got of the phone with the CA Board of Accountancy and they agree, although they said there is really noting they can do from their end. The lady did say a non-CPA signing a compilation report would open up possible civil and criminal charges, depending on circumstances, such a s false advertising. | |
| August 27, 2008 | |
| Nothing they can do? That doesn't sound right. There must be some reporting mechanism there. | |
| 28 August 2008 | |
| This is a gray area of the law. Bookkeepers are allowed to prepare financial statements; however, they cannot certify those statements. A compilation performed by a non-CPA might be a violation of B & P Code Sec. 5051 which basically prohibits a bookkeeper from holding himself out as an accountant unless he is licensed as a CPA. A compilation is performed in accordance with SSARS; consequently, the preparer of a compiled financial statement is presumably holding himself out to be a skilled accountant. Maybe, it would be better for the bookkeeper to issue a disclaimer letter with the financials. | |
RoyDaleOne (talk|edits) said: | 28 August 2008 |
| Just for the record, I am a CPA, well for right now anyway. A person may make a "report" about financial statements that is true. They can say I "audited" this stuff.
However, the reference to any standards, the AICPA, generally accepted would not be true unless licensed to make such statements. In other words I can say, I have complied the acco... f/s. (period), as long as I don't refer SSARS. This would be true if I had complied the financial statements. Non-certified accountants in Florida have been doing this for years. | |
| 28 August 2008 | |
| Occasionally, the California State Board of Accountancy will prosecute a bookkeeper who implies that he is an "accountant" or holds himself out to the public as being an "accountant." I suppose prosecution would be based on California B&P 5051; however, I agree that prosecuting an individual who uses the word "compiled" without referring to SSARS or AICPA would be a stretch. | |
| August 28, 2008 | |
| I do not know the laws in CA or FL, but I think it would be very misleading for a non-licensed practitioner to state that he or she "compiled," "reviewed" or "audited" any statements. Many business owners do not know about the requirements about AICPA standards and therefore might think they are dealing with someone who is allowed to perform those services. | |
