A
Anonymous
Guest
Sandbag,
I'm going to step outside our normal realm of sabor rattling and ask you a straight up question assuming you know something about this topic.
I was once a member of a certain non profit organization. A friend recently sent me the cover letter that was sent along with a financial statement from an accounting firm that conducted an accounting of assetts, liabilities and net assets on a cash basis for this non profit organization.
I was disturbed when I read it and was wondering what your reaction would be. I really don't know enough about business accounting to know what is and what is not appropriate when conducting financial accounting for a non profit organization.
If you were a member of a non profit organization and you requested a financial statement from that organization, what would you think if you read the following statement from their cover letter..................
Is it normal for a public accounting company to omit disclosures ordinarily included in financial statements?
~SH~
I'm going to step outside our normal realm of sabor rattling and ask you a straight up question assuming you know something about this topic.
I was once a member of a certain non profit organization. A friend recently sent me the cover letter that was sent along with a financial statement from an accounting firm that conducted an accounting of assetts, liabilities and net assets on a cash basis for this non profit organization.
I was disturbed when I read it and was wondering what your reaction would be. I really don't know enough about business accounting to know what is and what is not appropriate when conducting financial accounting for a non profit organization.
If you were a member of a non profit organization and you requested a financial statement from that organization, what would you think if you read the following statement from their cover letter..................
"A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statement and, accordingly, do not express an opinion or any other form of assurance on them."
"Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared on the cash basis of accounting. If the ommitted disclosures were included in the financial statements, they might influence the users conclusions about the Company's assetts, liabilities, fund balance, revenues, and expenses. Accordingly, these statements are not designed for those who are not informed about such matters".
Is it normal for a public accounting company to omit disclosures ordinarily included in financial statements?
~SH~