Bookkeeping, Write Up, and Accounting Services: What Is the Risk?

Shift your practices to a risk-based approach. Discover how to spot and mitigate risks.

In May, the AICPA Auditing Standards Board approved new quality management standards. CPA firms will need to shift their audit and quality assurance practices from a policies-based approach to a risk-based approach. With this impending change, financial institutions should revisit how they evaluate financial statement risks based on their source.

Many organizations use bookkeepers or bookkeeping firms to perform accounting functions and prepare financial reports. With no standard definition of “bookkeeping” or “write-up” services, it is challenging for banks and credit unions to rely on the numbers.

You need to understand the risks, independence considerations, and engagement issues. By comprehending how bookkeepers render services, you can better determine the accuracy and completeness of the information you receive.

• What risks are associated with bookkeeping services?
• For which types of work does AICPA require independence?
• What should engagement letters for bookkeeping services include?
• How should you evaluate engagement performance issues?
• How do bookkeeping services differ from compilations?
• What other issues should you consider?