What is a CPA verification letter?
CPA Letter for Verification of Self Employment is a document issued by the CPA who affirms that he/she has prepared or has reviewed the applicant’s tax returns and that the applicant is self-employed. The primary purpose of the letter is to independently verify the self-employment status of the loan applicant(s).
Can CPA provide comfort letter?
CPAs are regularly asked to provide a loan broker, lender or other third party with a comfort letter or verification letter on behalf of their clients.
Is a representation letter an insult to a CPA?
After all, didn’t we think that he was nothing but a lying skunk! Even though the public accounting profession refers to this letter as a representation letter, most CPA’s can understand how a client could think of it as an insult. So, what’s up with representation letters anyhow and why does your outside CPA require one?
Can a CPA sign a letter of third party verification?
This letter provides third-party verification of details in the application and could transfer some of the potential liability to the CPA in the event of default on the loan; it is not recommended that CPAs sign such a letter. Cautions for CPAs There are a few issues with this type of letter that should concern CPAs.
How do you sign a letter on behalf of another?
Now, when signing on someone else’s behalf, the signature is preceded by p.p. standing for per procurationem. The p.p. is a signal to the reader that someone signed the letter on behalf of another. Here are some examples of how to use the p.p. designation: p.p. Staff Signature. President’s Name. President’s Name.
What is a comfort letter or verification letter for CPAs?
CPAs are regularly asked to provide a loan broker, lender or other third party with a comfort letter or verification letter on behalf of their clients. More and more types of information are being requested to be verified by various agencies, lenders, health insurance providers, etc.