Attestation services are those in which the CPA team reviews an assertion, usually financial statements, of a company or person for correctness. Usually an opinion is issued, be it restricted, negative, positive, or with reservations. If an opinion is part of the deal, the CPA firm is held responsible for issuing it within the professional and legal requirements for doing so.
The company is the one that hires the firm for such services. Usually they are looking to report to owners, legal bodies, lenders, or other stakeholders. Management also learns of errors in the production of the financial statement and weaknesses in the control systems.
Management may request one of several services. The first is a simple compilation, where the company receives no opinion but has the financial statements checked for obvious errors. The second is a review, where limited tests are done and the stakeholders receive some assurance. An audit, in which the stakeholders obtain reasonable assurance that the statements are without error, can be of either the company's control procedures or the assertion itself.
The CPA team can prepare by familiarizing themselves with the company and the specific industry. Each member should educate themselves on any special accounting issues that might be new to them. They can also assure that there are no conflicts of interest between the team members, the firm, and the company. Finally they can design the types of tests that they believe will be necessary to complete the attestation service properly.
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