Consulting service in which a CPA expresses a conclusion about the reliability of a written statement that is the
responsibility of someone. To attest to information means to provide assurance as to its reliability.
There are 3 types of Attest engagement:
– Highest independent services available by a CPA.
Some of the procedures required by an outside
CPA in an audit environment include confirmation of bank balances, review and verification of bank
reconciliation, a search for deposits in transit, a search for any unrecorded outstanding checks, confirmation
with the bank of any offsetting balance requirements, lines of credit, security, debt covenants and their
compliance, verification of recording of checks, receipts and an assessment of internal control. The successful
completion will require verifying all substantive balance sheet and profit and loss items, obtaining a letter of
representation from the client's attorney, being present and performing substantive verification procedures of
inventory, notes payable, Board of Directors minutes and much, much more.
The purpose of an audit is to independently verify by sight, confirmation, discussion with management,
assessment of internal controls and analytical procedures, that a company's financial reports are substantively
correct. Audited financial statements will also include a statement of changes in financial and detailed and
referenced footnotes detailing the companies accounting methods, policies, and certain financial data. Again,
both the statement of cash flows and the attached footnotes and the procedures and reporting thereon are
governed by the AICPA, SAS's, and other governing and regulatory agencies.
Are substantially more expensive than any of the other levels of service available. Publicly traded/SEC
companies are examples of companies required to have an annual audit. It would be prudent also to consider
having an annual audit performed when someone other than the owner performs key areas of control and