It is common for our small business owner, and high net worth clients to request that their CPA prepare a personal financial statement for them. This is often a requirement from lenders. CPAs need to understand that lenders will claim they relied on these statements when providing loans to the clients, and if the clients default, they will attempt to claim damages from the CPA who prepared the statements. We will discuss the risks involved in preparing personal financial statements and how you can reduce your risk exposure should you decide to prepare them.
Publication Date: March 2024
Topics Covered
- Personal Financial Statements
- Accounting Standards
- Estimated Value
- Comfort Letters
- Potential Issues
Learning Objectives
- Recognize how to prepare personal financial statements
- Determine the proper disclosures for personal financial statements
- Describe the concept of "estimated current value"
- Identify the reporting requirements related to personal financial statements
- Identify the approach the Guideline Public Company Method falls under
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Robert K Minniti
DBA, CPA, CFE, Cr.FA, CVA, MAFF, CFF, CGMA, PI
Dr. Minniti is the President and Owner of Minniti CPA, LLC. Dr. Minniti is a Certified Public Accountant, Certified Forensic Accountant, Certified Fraud Examiner, Certified Valuation Analyst, Certified in Financial Forensics, Master Analyst in Financial Forensics, Chartered Global Management Accountant, and is a licensed private investigator in the state of Arizona.
Dr. Minniti received his doctoral degree in business administration from Walden University, received his MBA degree and Graduate Certificate in Accounting from DeVry University’s Keller Graduate School of Management, and received his Bachelor of Science in Business Administration degree from the University of Phoenix. Dr. Minniti taught graduate and undergraduate courses in forensic accounting at DeVry University, Grand Canyon University, Kaplan University, Northwestern University, and the University of Phoenix. He designed graduate and undergraduate courses for Grand Canyon University, Northwestern University, and Anthem College.
He is a writer and public speaker. He has experience in forensic accounting, fraud examinations, financial audits, internal audits, compliance audits, real estate valuations, business valuations, internal control development, business continuation planning, risk management, cyber security, privacy laws, data security, Sarbanes-Oxley compliance work and business consulting. In addition to his practice Dr. Minniti is an instructor teaching continuing professional education classes for a variety of providers and CPA Societies.
Dr. Minniti is currently serving as a board member on the National Association of Certified Valuators and Analysts' (NACVA) Litigation Forensics Board (LFB) and as a committee member on the Arizona State Board of Accountancy's Law Review Advisory Committee.