A CPA letter prepared by a certified public accountant (CPA) provides assurance about the accuracy and completeness of financial information in various situations. By working with an experienced certified public accountant, you can obtain a CPA letter that helps to achieve your objectives. This article will discuss when a CPA letter is required in New York.
About CPA Letters
A CPA letter assures the recipient that the financial information is accurate and complete. Individuals, businesses, and other organizations in New York require CPA letters for the following reasons:
Loan Applications
When applying for a loan, lenders may require a CPA letter to verify the accuracy of the financial information provided. The CPA will review the financial statements and other relevant documents to ensure that they are accurate and complete.
Audits
During an audit, a CPA letter verifies that the financial statements are accurate and complete. The letter will typically be addressed to the auditors and summarizes the CPA’s findings.
Tax Returns
A CPA letter may be required when preparing tax returns to verify that the financial information presented is accurate and complete. The Internal Revenue Service (IRS) and the New York State Department of Taxation of Finance often require CPA letters.
Legal Proceedings
Courts may require a CPA letter in a legal proceeding to verify the accuracy of the financial information presented as evidence.
Business Transactions
When buying or selling a business, a CPA letter may be required to provide assurance about the accuracy of the financial information presented. The buyer, the seller, or their respective attorneys may request a CPA letter.
What Information Is Included in a CPA Letter?
A CPA letter typically includes the following information:
- Introduction – The letter will begin with an introduction that identifies the CPA and the purpose of the letter.
- Scope – The letter will describe the scope of the CPA’s work and the procedures performed. For example, the CPA may have reviewed financial statements, bank statements, and other relevant documents.
- Findings – The letter will summarize the CPA’s findings and provide assurance that the financial information presented is accurate and complete.
- Limitations – The letter will also describe any limitations on the CPA’s work, such as the extent of the review or the reliability of the information provided.
The Takeaway
A CPA letter is required in New York to assure the accuracy and completeness of financial information in several situations, including loan applications, audits, tax returns, legal proceedings, and business transactions. A well-crafted CPA letter will provide assurance to the recipient that the financial information presented is accurate and complete. Talk to an experienced CPA today if your business needs a CPA letter.