Accounting Archives - Langdon & Co

Why Hire a CPA?

Pam WilliamsOctober 20, 20150 Comment

by Brittany Spragins

When looking to hire an accountant to prepare your taxes or perform an audit, you want to ensure that you select a CPA for several reasons. When you see the CPA designation, you are assured a level of quality that surpasses the average accountant. CPA seal

Every state maintains its own standards and criteria for becoming a CPA. According to the NC State Board of Accountancy, the use of the CPA designation is granted only to individuals “who meet the statutory requirements” of NCGS 93-12. These requirements include passing all four sections of the CPA exam, receiving a minimum level of college education with an emphasis in accounting, an accounting law course that covers ethics, professionalism, and professional responsibility, and appropriate work experience. When the CPA submits his or her application, it must be accompanied by 3 letters of recommendation to indicate “good moral character.”

When selecting a CPA, you are assured that,

“a CPA should at all times maintain independence of thought and action, hold the affairs of clients in strict confidence, strive continuously to improve professional skills, observe generally accepted principles and standards, promote sound and informative financial reporting, uphold the dignity and honor of the accounting profession, and maintain high standards of personal conduct.” -www.NCCPABoard.gov

In North Carolina, it is against the law to use the CPA title without the state’s approval that you meet its qualifications. Part of the benefits to the client is that the NC CPA Board establishes consumer confidence since it instills peer reviews of the CPA’s work. It also provides enforcement of professional ethics and code of conduct to ensure client confidence.

Whether you hire Langdon and Company LLP to assist you on a personal or corporate level, you can have the confidence that you are hiring a CPA firm that upholds the highest levels of professional and ethical standards, maintains excellent working knowledge of the tax and assurance current events, and is a focused on a personal relationship with the client.

For more information on CPA’s, you can visit the American Institute of Certified Public Accountants (AICPA) website www.aicpa.org or the NC State Board of Accountancy website www.nccpaboard.gov

Brittany ([email protected]) is a staff member of Langdon & Company LLP’s tax practice. She focuses primarily on high net-wealth individual returns and their closely-held companies.

SSARS 21: Statement on Standards for Accounting and Review Services: Clarification and Recodification

Pam WilliamsApril 20, 20150 Comment

by Lee Byrd

Representing the most significant changes to the compilation and review literature in decades, the AICPA Accounting and Review Services Committee recently issued Statement on Standards for Accounting and Review Services (SSARS) No. 21. The guidance aids in drawing a definitive line between preparation and reporting services and is composed of four sections as follows:

Section 60 – General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, provides a foundation for the other three sections and guides professionals on their responsibilities related to engagements performed in accordance with SSARS.
Section 70 – Preparation of Financial Statements, applies when an accountant is engaged to prepare financial statements but is not engaged to perform an audit, review or a compliation on those financial statements. Professional judgment should be used in determining the type of engagement requested by the client (i.e. whether the CPA is engaged to prepare financial statements or simply assist in their preparation). A report is not required for a preparation engagement but the CPA should include a legend on each page of the financial statements stating, “no assurance is provided.”
Section 80 – Compilation Engagements, applies when an accountant is engaged to perform a compilation engagement. The guidance provides new compilation report language, distinguishing this report from an assurance engagement report for audit or review services. CPAs may add additional paragraphs for explanatory purposes.
Section 90 – Review of Financial Statements, applies when an accountant is engaged to perform a review of financial statements. The accountants’ review report has been updated to require the use of headings in the report and the name of the city and state of the CPA’s issuing office.

Successful business group. CPAs are required to begin using SSARS 21 for financial statements with periods ending December 15, 2015 and thereafter; however, the standard allows for early implementation. The standard also requires a signed engagement letter for all SSARSs engagements, signed by both the CPA and management or those charged with governance. Additionally, while audit, review and compilation engagements require participation in a peer review program, preparation services do not fall within any of the aforementioned categories and therefore, are not subject to peer review.

Langdon & Company LLP‘s accountants are very familiar with this new standard and would be happy to answer any questions you may have. Please contact our office for additional information.

Lee Byrd ([email protected]) is an Audit Manager at our Firm and has over 7 years of experience with a variety of clients.