Fs Project


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A Presentation that I previously completed to explain how financial statements are prepared

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Fs Project

  1. 1. How Accounting Firms Prepare Financial Statements Presented by: Laura M. Weiss ACC205—Principles of Accounting 1 Facilitator Luanne Amato
  2. 2. My Background and Kreischer Miller <ul><li>Financial Statements Processor (Financial Analyst) </li></ul><ul><li>Kreischer Miller is one of the largest full service public accounting firms in the Greater Philadelphia area. We serve a broad base of clients in various industries and our directors and managers rank among the leaders of our profession in technical issues, industry knowledge and management skills. We offer an array of value added services beyond traditional accounting and auditing and tax services, including business advisory, human resources and technology. </li></ul>
  3. 3. Steps to Preparing Financial Statements <ul><li>Before any work is done for any client: </li></ul><ul><ul><ul><li>Engagement Letter </li></ul></ul></ul><ul><ul><ul><li>Management Representation Letter </li></ul></ul></ul><ul><li>Make appointment to receive all necessary paperwork from the client </li></ul><ul><li>After meeting with the clients and receiving all the paperwork, then the accountants go back to the office and start working on the financial statements </li></ul>
  4. 4. What is an Engagement Letter? <ul><li>An engagement letter is a letter sent out to clients detailing the work to be performed for them, who will be performing the work, including whether the work is outsourced, confirming that all private and personal information is secure, and specifying the costs for accounting staff to perform the services </li></ul><ul><li>Example: http://www.accountantsworld.com/auditletters/AuditEngLtr.doc </li></ul>
  5. 5. What is a Management Representation Letter? <ul><li>A Management Representation Letter is a letter addressed to the auditor that has been drafted by the auditor and given to the client's management to sign. </li></ul><ul><li>Example: http://www.abrema.net/abrema/mrl_example_note.html </li></ul>
  6. 6. 3 Types of Financial Statements That Are Prepared <ul><li>Audit—An examination of a company’s financial statements and the accounting system </li></ul><ul><li>Review—Performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles (GAAP) </li></ul><ul><li>Compilation—Presented in the form of financial statements information that is the representation of management (owners) without undertaking to express any assurance on the statements </li></ul>
  7. 7. What’s included in the financial statements? <ul><li>Independent Auditors’/Accountants’ Report </li></ul><ul><li>Balance Sheet </li></ul><ul><li>Statement of Operations </li></ul><ul><li>Statement of Cash Flows </li></ul><ul><li>Notes to Financial Statements </li></ul><ul><li>Supplemental Information (if needed) </li></ul>
  8. 8. When financial statements are ready to be finalized… <ul><li>When financial statements are done being changed and analyzed and we have all the required signatures needed from the clients, then financial statements are: </li></ul><ul><ul><ul><ul><li>Prepared as a .pdf in Adobe Acrobat so we have backup copies for future references </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copies made and binded along with the cover letters prepared and signed by a Director on the account by the Financial Statements Department </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sent out to clients by FedEx or whatever shipment the clients prefer (depending on how quickly they need the financial statements for their board members, finance committees, and stockholders or shareholders) </li></ul></ul></ul></ul>
  9. 9. Any Questions??? Thank you for your time and hope you’ve enjoyed my presentation!!!