CPA letter – mortgage

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  • #1554768
    ForgottenOne
    Participant

    A new client has contacted me regarding a CPA letter for a mortgage on 2017 first quarter business income.

    From my understanding, I can either
    1. Conduct a full blown audit in compliance with the AICPA Statements on Standards for Attestation Engagements (SSAE) and give assurance.
    2. Use a generic letter and give no assurance containing such language:
    “This letter confirms to you that I prepared the federal tax forms for 200X and 200Y for the Client family. These forms included Schedule C, Profit or Loss From Business. If the Clients authorize me to do so, I can send you a copy of these tax forms so that you can perform your due diligence. If you are making such a request, please send my firm an authorization form signed by the Client authorizing me to release this information to you.

    I prepared the tax forms from information that was provided to me by the Clients. As is normal in this type of professional service by my office, I was not hired to perform and did not perform audit or other types of verification of the information provided to me. Thus, I cannot make any professional representation or assurance of the accuracy of this information or the sufficiency of the tax form for your credit decision-making purposes.”

    Option 1 takes way more time and fee. I am thinking to go with option 2. You guys have any tip regarding this issue?

    AUD - 86
    BEC - 76
    FAR - 75
    REG - 83
    Forgot
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  • #1555146
    Lucy15
    Participant

    The firm I work for always goes with your option two. I don't think you want to run the risk of being held liable if your client fails to pay their mortgage.

    BEC - 77
    REG - 73, 72, 80
    AUD - 68, 85
    FAR - 71, 79
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