Tax accountants follow attestation standards in order to provide guidance, set boundaries around a growing service line, outline objectives, and define a measure of quality. Attestation engagements follow eight main standards, all of which are found in attestation engagements. These standards include:
- Compliance: Each engagement should consider all required standards and consider how they will be incorporated. If a standard can’t be followed, an alternative measure must be identified so that the purpose of the requirement can be met.
- Acceptance: An acceptance is a work paper meant to document that the acceptance and the choice to continue working with a client is created and maintained for every engagement.
- Preconditions: Certain preconditions needs to exist before an engagement can be accepted. These include: the independence can’t be impaired, the accountant’s client must understand that they are responsible for the subject matter and its accuracy, and the engagement topic must be appropriate and sufficient evidence must be available to come to a conclusion.
- Engagement: The fourth standard for attestation accounting services requires that the firm performing the engagement understand the standards that apply to adequate performance.
- Engagement Changes: Changes to the engagement terms cannot be made unless they are reasonable, and they are not done as a way to mislead readers.
- Use of Other Practitioner’s Work: Accountants can use other practitioner’s work as long as the proper due diligence is completed to ensure that the practitioner can meet the same professional standards as the lead accounting firm.
- Quality Control: This standard requires that the engagement partner is responsible for checking the work of all the auditors involved to determine whether they meet the necessary quality control standards.
- Professional: Finally, all work completed has the objective of engagement is to provide assurance. This standard allows a healthy amount of skepticism that is necessary for the planning and execution of attestation services.
For New York City alone, the Department of Finance collects more than $35.8 billion in revenue. If you own a company and are in need of attestation services, we offer this incredibly detailed service. For companies of a certain size or with certain debt and equity finding requirements, audited financial statements may be required.
