Client asks CPA to present financial information to investor

Hi

Random question. CPA is asked to calculate IRR to investors. Done. Now client wants to know if he can present to investors. Issues? I'd be glad to give more info, but I"m not sure what. Not sure what the ramifications are.

The investment is to buy a very expensive piece of equipment. It's going to be leased. The lease provides for specific payments and other expenses that provide for a readily calculable IRR. The lessee is a hospital. The lessors are a group of specialized doctors who know how to use the equipment. The investors will be other physicians. The CPA presenting financial information could be misconstrued as an opinion about an investment. The calculation began as a white paper engagement (just a client asking for us to crunch some numbers with nothing with our letter head on it). No engagement letter (as of yet). Any more questions or thoughts?

I've not done anything like that, but there's no way I'd get involved with it without calling the aicpa and/or insurance carrier for some guidance.

You may have a conflict with Medicare/Medicaid Regulations - where Physicians who own an interest in a Medical Facility; are barred from seeking reimbursement from the Gov't for certain services. For example, where a Physician Group buys an MRI places it in a hospital and the owners refer M/M patients - and bills HHS - that is a prohibited transaction.

No, you cant authorize him to give your presentation, as he would be your agent and you would need to train and supervise the communication, otherwise it could mislead investors in which case you would be on the hook.

He can communicate to investors that according to my CPA, "blah, blah, blah". You should have nothing to do with it though, what he does with the information that you provided him is his business. Your firm policy should be that any prior communication with the investors was strictly for them, but you can provide a second presentation to the second group of investors.