Must the member review the proposed journal entries and explain their impact on the financial statements to the client in person or can this review take place by phone, fax, mail, or e-mail?
The review process can take place in person; by phone, fax, mail, or e-mail; or a combination thereof. Regardless of the method used, the member must be satisfied that the client understands the nature and impact of the journal entries. 10. As part of performing bookkeeping services, a member records adjusting journal and reclassification entries and prepares the client’s preliminary financial statements. The member does not review each and every journal entry with the client, but, rather, the member describes the nature of the journal entries and their impact on the preliminary financial statements. The client approves the preliminary financial statements and issues them to its bank. Would the requirements of Interpretation No. 101-3 be met? Yes. Provided all of the other requirements of Interpretation No. 101-3 are met. Controllership Services 1. A member provides temporary controllership services and various types of other temporary accounting services for clients during client mate
Related Questions
- Is a member permitted to assist the client in understanding the nature of adjusting entries and their impact on the financial statements?
- What impact will the proposed streetcar have on corridors where there is currently design and construction projects that are underway?
- Must a member document the client’s review and approval of journal entries proposed by the member?
