Business Acquisition - Looking at Books/Processes

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#1
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2878
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Northern MI and Coastal SC
I have been asked by various prospects to look at the books, tax returns, technology, and processes of companies they are contemplating buying. Basically, see if I spot anything of concern, incorrect, if tax returns cannot be reconciled to financials and bank accounts and try to ascertain why they do not, look at their technology for proper utilization and efficiency or if it needs to be replaced, etc.

Is this crossing into attestation services? It seems like a gray area to me given I am not being hired to give any assurance concerning the books. I am potentially being hired to FIND PROBLEMS the buyer may not spot on their own based on the fact I have a lot of controllership experience.
 

#2
sjrcpa  
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6422
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23-Apr-2014 5:27pm
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Maryland
We do not consider that attestation work at our firm, and we do audit work.
That falls under our M&A Consulting rubric.
 

#3
eze  
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308
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8-May-2014 7:02pm
Location:
Grey Area, California
It's a fine line between consulting and attest work.

PPC used to have a really good guide on this. But I can't find the "Special Engagements Guide" in their list now....thanks ThomsonReuters. If you can find a guide like that, it helps with engagement letter and sample situations.
 

#4
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22-Oct-2014 7:13am
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NC
Its not attestation work. Management advisory.

Signed, former peer reviewer
 


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