Why I Won't Sign a Comfort Letter
A client asks you to fill out a one page government form. Name, address, how much rent they pay. It only takes two minutes, but I won't do it.
Yehuda Tenenbaum and I got into this while recording an episode about tax tech, and it went far enough off track that it became its own video. He's an EA. I'm a CPA. Our rules aren't the same.
What we get into:
Why signing off on a client's numbers is an attest service, whether you meant it that way or not
Comfort letters, and what mortgage brokers actually need from you
The AICPA's template letter and what it really says
Compilations vs bookkeeping vs financial statement prep
Why your clients almost certainly don't need an audit or a review
What happens to an unlicensed preparer who signs one of these and what happens to a CPA
This is two people talking, not advice for your situation. Your state board, your license, and your liability are yours. Check with someone qualified before you sign anything.
Join the community for tax firm owners here:
https://www.acceleratorcommunity.com/join-now
Signup for my newsletter:
https://www.wootencpa.com/newsletters
Find me on LinkedIn
https://www.linkedin.com/in/brad-wooten-cpa/
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*Disclaimer:
This podcast is for entertainment purposes only and is not financial, tax, or legal advice.
All content on this podcast is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Our content is not tax, financial, or legal advice and should not be implemented as such by any individual, business, or other entity. Should you need such advice, consult a licensed financial, legal, or tax advisor. Any information contained in our content related to budgeting, finances, taxes, investments, etc. are solely our opinions and are not intended to influence specific decisions you make as it relates to your finances. No guarantee is given regarding the accuracy of the information on this podcast. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.
Yehuda Tenenbaum and I got into this while recording an episode about tax tech, and it went far enough off track that it became its own video. He's an EA. I'm a CPA. Our rules aren't the same.
What we get into:
Why signing off on a client's numbers is an attest service, whether you meant it that way or not
Comfort letters, and what mortgage brokers actually need from you
The AICPA's template letter and what it really says
Compilations vs bookkeeping vs financial statement prep
Why your clients almost certainly don't need an audit or a review
What happens to an unlicensed preparer who signs one of these and what happens to a CPA
This is two people talking, not advice for your situation. Your state board, your license, and your liability are yours. Check with someone qualified before you sign anything.
Join the community for tax firm owners here:
https://www.acceleratorcommunity.com/join-now
Signup for my newsletter:
https://www.wootencpa.com/newsletters
Find me on LinkedIn
https://www.linkedin.com/in/brad-wooten-cpa/
******************************
*Disclaimer:
This podcast is for entertainment purposes only and is not financial, tax, or legal advice.
All content on this podcast is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Our content is not tax, financial, or legal advice and should not be implemented as such by any individual, business, or other entity. Should you need such advice, consult a licensed financial, legal, or tax advisor. Any information contained in our content related to budgeting, finances, taxes, investments, etc. are solely our opinions and are not intended to influence specific decisions you make as it relates to your finances. No guarantee is given regarding the accuracy of the information on this podcast. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.
