You may be asked to furnish financial statements prepared by a CPA. The request usually comes from a bank, leasing company or large vendor.
You will be asked to provide a full, or partial, set of financial statements. And, you will be requested to obtain a certain level of attestation.
- Income Statement – Summarizes revenues and expenses
- Balance Sheet – Summarizes assets, liabilities and equity
- Statement of Cash Flows – Summarizes sources and uses of cash
- Aged Receivables – Summarized by customer and grouped by age
- Aged Payables – Summarized by vendor and grouped by age
Levels of Attestation
- Compilation – The most common level. Requires the least amount of work and expense
- Review – Requires additional testing of the information, which adds to the work and expense
- Audited – The highest level of assurance available. Requires substantial work and expense.