Year End Financial’s; Explained in LaymenR
Home » Important Posts, New Legislation » Year End Financial’s; Explained in Laymen’s Terms:
By | 1 CommentLeave a Comment
Last updated: Saturday, January 18, 2014

Year End Financial’s; Explained in Laymen’s Terms:

While Cash Receipts and Expenditures can be prepared by a book keeping, a compilation can only be performed by a licensed CPA based on Florida statutes; – according to the Florida Department of Business and Professional Regulation (DBPR). The levels of service that CPA’s provide for financial statements are generally compilations, reviews, and audits.

A compilation broadly provides no assurance by the CPA, other than stating that the CPA has compiled your information in the form of a financial statement(s) and has not performed an audit or review.

A review basically provides negative assurance, stating that the CPA has performed inquiry and analytical procedures, and based upon such, the CPA is not aware of any significant modifications that are needed in order for the financial statements to be presented in accordance with generally accepted accounting principles, or an alternative appropriate other comprehensive basis of accounting, such as cash basis.

An audit is positive assurance, whereby the CPA gives his/her professional opinion that the financial statements are fairly presented (materially correct to the reasonable man relying on the financial statements) in accordance with generally accepted accounting principles or an appropriate other comprehensive basis of accounting. The opinion goes into additional details as about what an audit consists of and doesn’t consist of.

A general charge $300-$500 for compiled financial statements for condo/homeowner associations with no disclosures/footnotes.

Comments

1 comment
  1. Barbara
    Friday, February 14, 2014

    Great information! Thanks for the explanation ….

    Leave a reply

Leave a Comment

← Prev Step

Thanks for contacting us. We'll get back to you as soon as we can.

Please provide a valid name, email, and question.

Powered by LivelyChat
  • You're chatting with
    Admin

Powered by LivelyChat Delete History
Copyright ©2016 Gulfshore Property Mgmt. All Rights Reserved.