Best CPAs in Los Angeles, CA

Examinations passed, supervised experience completed, continuing education kept current, and a state board that can suspend the license for misconduct. It also carries unlimited practice rights before the tax authority. It is not a promise of good service. It is a floor of testing and accountability that an unlicensed preparer does not stand on.

Whichever the party asking for statements will accept. A bank covenant, an investor agreement, a franchise contract or a grant condition normally names the level in writing. Do not buy an audit because it sounds thorough; it costs far more and takes far longer. Get the requirement in writing first, then price the engagement.

Lenders on larger facilities, investors and acquirers, franchisors, insurers writing bonds, government agencies awarding contracts or grants, and boards of nonprofits above a funding level set by their state. Employee benefit plans have their own rules. If nobody in that list is asking, you probably need a lighter engagement.

More than most first-timers expect. Closed books, reconciliations that tie, supporting schedules, contracts and minutes, confirmations sent to banks and customers, and someone available to answer questions for the duration of the fieldwork. The cleaner the preparation, the shorter the engagement and the smaller the bill.

Sometimes, and the rules are strict about where the line falls. A firm cannot audit work it effectively performed itself, so bookkeeping and management decisions are off limits for an audit client. Tax compliance is often allowed with safeguards. Ask the firm to explain its independence position in writing before you engage it for both.