Client Compliance - Accounting Software Secrets
18211
book-template-default,single,single-book,postid-18211,bridge-core-2.6.3,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode-theme-ver-24.8,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.5.0,vc_responsive

Client Compliance

Client Compliance

Client Compliance

SSARS 8 states that the financial statements are for management use only.  To help eliminate non-compliance language can be included in the engagement letter stating that statements can be prepared for third parties as an additional service if needed.  If the client should subsequently distribute the management use only financial statements to third parties, the accountant should remind the client of the restricted nature of the statements and request that the client have the statements returned.  If it is determined that the distribution of restricted statements was intentional by the client, integrity of management should be considered prior to any additional work being performed.  After a reasonable amount of time, the accountant should consult with an attorney and contact the known third parties directly.

 

More information on this topic

Client Management Issues