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Audit Findings In each case, the audit letter typically requests documentation that must be returned to the IRS for review and the IRS will follow up after that information is reviewed. You also can send your own letter to the IRS explaining any issues that require resolution.
Known as the audit opinion letter, this is where your auditor states whether the financial statements are fairly presented in all material respects, compliant with Generally Accepted Accounting Principles (GAAP) and free from material misstatement.
If you are one of the less than one percent of people who receive an IRS audit letter, dont panic. More than likely, your tax return was flagged because of one of these common IRS audit triggers. For most mail audits, the IRS asks you to explain or verify something simple on your return, including: Unreported income.
Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review.
An accountants certificate of confirmation tends to be a letter from a certified accounting firm or accountant in which they confirm that they have managed the individuals business accounts.

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Purpose of a SAS 72 Representation Letter. A comfort letter is a letter delivered by the issuers auditors in an offering of securities registered with the SEC under the Securities Act and in many types of unregistered securities offerings.
Preparing for an Audit Engagement? Plan ahead. Ensure ease of access of accounting records. Prepare internal financial analysis. Seek assistance for complex accounting. Review prior year adjusting entries. Ensure books are kept accurate throughout the year. Self-review for quality control. Communicate with auditors.
Now that weve covered terms-and-conditions, here are the sections that most engagement letters include: Identification. You should properly identify who will receive your services. Scope of services. Period of engagement. Fee structure. Responsibilities. Professional standards. Confirmation of terms.
This information is stated in an engagement letter, which is prepared by the auditor and sent to the client. If the client agrees with the terms of the letter, a person authorized to do so signs the letter and returns a copy to the auditor.
Dates of comfort letters The principal SAS 72 comfort letter is ordinarily dated as at the date of pric- ing. The comfort letter states that the inquiries and procedures do not cover the period from the cut-off date to the date of the letter.

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