Confirming specified information

[swiftax]

Someone came to me today and asked me to validate the existence of his company so that he will an online certification. He wants to sell stuff over the internet and online company which secures sites asked him to have a letter from a CPA stating this business is in business. The internet company has listed some instructions for the CPA to follow such as:

1) Agree legal name to permanent audit file (if audit has been completed

2) Bank account: Request a letter from the bank confirming the existence of the account for the benefit of the client.

After performing these steps they want the CPA to state:

We have performed the procedures enumerated above which were agreed to by the management of the client, solely to assist you in evaluating the company's application for an premium certificate...This agreed-upon procedures engagement was conducted with attestation established by the AICPA.

Has anyone seen this kind of request? What is the reasonable fee to charge.

Thanks

Jeff

[jainen]

>>a letter from a CPA stating this business is in business<<

You should ask this question at AICPA or an accounting board if you have that kind of relationship to your client. I'm pretty sure even a CPA who has audited the activity should be exceedingly cautious of declaring that "this business is in business." As a minimum you should probably only address it to your client, not a third party who may use your assurance to incur substantial risk.

If you are primarily a tax preparer don't ever write such a statement without legal advice. You really aren't in a position to attest anything except that he filed his tax return(s) with Schedule C, the form normally used to report self employment income, and that he reported interest from an account at the named bank.

[bay]

Someone came to me today and asked me to validate the existence of his company so that he will an online certification. He wants to sell stuff over the internet and online company which secures sites asked him to have a letter from a CPA stating this business is in business. The internet company has listed some instructions for the CPA to follow such as:

1) Agree legal name to permanent audit file (if audit has been completed

2) Bank account: Request a letter from the bank confirming the existence of the account for the benefit of the client.

After performing these steps they want the CPA to state:

We have performed the procedures enumerated above which were agreed to by the management of the client, solely to assist you in evaluating the company's application for an premium certificate...This agreed-upon procedures engagement was conducted with attestation established by the AICPA.

Has anyone seen this kind of request? What is the reasonable fee to charge.

Thanks

Jeff

I would not do this!; In OHIO you can obtain online a Certificate of Exsitence from the Ohio Secretary of State's office that shows the name of the corporationl; charter number and when they were incorporated with a nominal fee. I do not know what state you are in, but either by internet or by sending in a written request your client can get this information for his company

In regards to the attestation "stuff" I always have to spend a few hours going over my "PPC" books to make sure wording, all steps are followed; In Ohio I have to go through a peer review every three years and they look at this stuff - too complicated and time consuming

good luck

[swiftax]

I decided not to do this service and advised the client to get a certificate of good standing from the VA state secretary. That will show the business is in good standing with the state.

Thank you for the advise.

Jeff