what is an audited income statement?

Question

I am submitting some financial docs and now they want an Audited Income Statement - I have no clue - I use Quickbooks but I don't see it listed under reports
Thank You!

Answer 1

You have to be careful about which answers you rely on in here. Some people like to answer questions without having the knowledge to do so.

You will need to hire a CPA to perform the audit. However, Generally Accepted Accounting PRINCIPALS (GAAP) are not set by the AICPA or the state accountancy board, they are set by the Financial Accounting Standards Board (FASB). The CPA will use generally accepted auditing standards (GAAS) as set by the AICPA (unless you are a public company in which case they will use PCAOB standards). Finally, the CPA WILL NOT issue an opinion on the financial health of your business. He will issue an opinion on whether or not your financial statement are in conformity with GAAP.

This could be quite costly depending on the size of your company and the condition of your records. Talk to the people requesting an audit and make sure they really understand what an audit is. Some people use the term audit when they will settle for a review or compilation. Both of these are levels of service a CPA can provide for you on your financial statement, but they are much less costly.

Answer 2

You'll need to hire a CPA for that one. (And you don't have to be a corpration, either!)

A CPA will carefully review your books for accuracy and ensure that they meet the Generally Accepted Accounting Practices (or Principles) of your state accountancy board and/or the American Institute of Certified Public Accounts. The audit will include various tests and statistical analyses to assure that the financial statements accurately reflect your business' financial condition. The audit will include a formal opinion by the CPA of the financial health of the business and the accuracy of the financial statements.

This isn't something that you can pull out of Quickbooks. You must hire a CPA for this one.

Answer 3

That would usually be a question asked of a corporation. Basically they are looking for the income statement that is audited by an accounting firm to verify its accuracy.