Non-CPA disclosure

[Bees Knees]

326A.10, Minnesota Statutes 2006
Copyright © 2006 by the Office of Revisor of Statutes, State of Minnesota.

326A.10 UNLAWFUL ACTS.
(a) Only a licensee may issue a report on financial statements of any person, firm,
organization, or governmental unit that results from providing attest services, or offer to render
or render any attest service. Only a certified public accountant, a CPA firm, or, to the extent
permitted by board rule, a person registered under section 326A.06, paragraph (b), may issue a
report on financial statements of any person, firm, organization, or governmental unit that results
from providing compilation services or offer to render or render any compilation service. These
restrictions do not prohibit any act of a public official or public employee in the performance of
that person's duties or prohibit the performance by any nonlicensee of other services involving the
use of accounting skills, including the preparation of tax returns, management advisory services,
and the preparation of financial statements without the issuance of reports on them. Nonlicensees
may prepare financial statements and issue nonattest transmittals or information on them which
do not purport to be in compliance with the Statements on Standards for Accounting and Review
Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, to the
extent permitted by board rule, prepare financial statements and issue nonattest transmittals or
information on them.

[jainen]

I never said anything

>>I do the bookkeeping for the client<<

I never said anything about bookkeeping. I don't even know what the difference is between bookkeeping and accountancy. I have a feeling that the state defines accountancy pretty broadly. Surely Corduroy's plan to mark a document "unaudited" will not prevent the licensing agency from being interested.

[Bees Knees]

Its not illegal in every state.

[Gretel]

Wow

So, what you are saying is: I do the bookkeeping for the client and the client asks me to fax, whatever I have in QuickBooks, to the bank or mortgage broker or vendor. This is illegal? To get around it the client would need to do this himself?

[jimmcg]

State Codes and Accountancy Board interpretations vary from state to state. Only way to determine the facts in your state is to contact your State Accountancy Board. Generally their website has the facts you want to know.

[jainen]

an authority on this

>>simply attach them to a tax return<<

I don't have an authority on this, but it seems to me that the prohibition is not on presenting the statement, but on preparing it.

[Bees Knees]

Attaching a financial statement to a tax return as backup to data entered on the tax return is not considered to be a financial statement. To get around the prohibition against non-CPAs issuing financial statements, simply attach them to a tax return and tell the client to give the tax return along with the attached backup documentation to whatever 3rd party needs to see them.

[OldJack]

>>In California it is illegal for non-CPA's to prepare accounting statements.<<

In most states, if not all, it is illegal unless you are the employee bookkeeper of the business perparing a report for the owner (and not for 3rd parties use).

[jainen]

In California it is illegal

>>If you are not a CPA<<

In California it is illegal for non-CPA's to prepare accounting statements.

[Corduroy Frog]

Unaudited

Gabriele, if you actually prepare financial statements, I would mark each page at the top "Unaudited" and let it go at that. If you are not a CPA, there is no preamble, no opinion, nothing that would be regarded anyway.

Bankers that know me will accept my statements without audit. But I would leave such things as audits, opinions, or reviews to CPAs.

[Gretel]

I tried to find in all my folders what I, as a non-CPA, have to put on financial statements I provide to third parties on behalf of clients. I know, I have it somewhere but couldn't find it. Can someone please help me?