Understanding Attestation Standards
Tax accountants follow attestation standards to guide their work, set clear boundaries, outline objectives, and ensure high-quality outcomes. Attestation engagements adhere to eight key standards:
Compliance
Accountants must fully consider and incorporate all required standards in each engagement. If they cannot follow a standard, they must identify an alternative measure that fulfills the requirement’s purpose, ensuring compliance and maintaining engagement integrity.
Acceptance
Accountants must document the decision to work with a client for every engagement. This acceptance document serves as a formal agreement, ensuring clear records and accountability throughout the process.
Preconditions
Before accepting an engagement, accountants must meet specific preconditions. They must ensure their independence remains intact, confirm the client understands their responsibility for the subject matter and its accuracy, and verify that sufficient evidence supports the engagement’s conclusions.
Engagement Understanding
The firm performing the engagement must grasp the applicable standards for adequate performance. This understanding ensures they conduct the engagement effectively and meet all necessary criteria.
Engagement Changes
Accountants must handle any changes to engagement terms reasonably and avoid misleading readers. They should document and justify these changes to maintain transparency and trust.
Use of Other Practitioner’s Work
Accountants can incorporate another practitioner’s work, provided they complete due diligence to ensure the other practitioner meets the same professional standards as the lead accounting firm. This practice upholds the quality and reliability of the engagement.
Quality Control
The engagement partner must review the work of all auditors involved to ensure it meets established quality control standards. This oversight ensures accuracy and reliability in the engagement results.
Professional Skepticism
Accountants must apply professional skepticism to provide assurance. They should critically assess and carefully evaluate all aspects during the planning and execution of attestation services to ensure credibility.
In New York City, the Department of Finance collects over $35.8 billion in revenue. If your company needs attestation services, we offer detailed, professional support to meet your specific needs. For companies with particular requirements, we can provide audited financial statements to ensure compliance with regulations and standards.
