tion, clients may continue to press you
to provide the specific representation
that a lender, broker, or other third party
is seeking. The third party may assert
that the client will not be approved for a
loan or may otherwise fail to meet their
requirements if the CPA does not pro-
vide the requested letter, verification or
certification. When this occurs, remind
the client about the limited nature of the
scope of services provided, and why it is
inconsistent with such representations.
forming their own due diligence rather
than relying on a representation or ver-
ification of information by a CPA. This
is especially true when the requested
representations are outside the scope
of the CPA's engagement and the
requested verification relates to infor-
mation that comes from the client, for
which the CPA has no first hand knowl-
edge. Additionally, while clients desire
the flexibility to obtain credit in the mar-
ketplace, the responsibility for under-
creditworthiness of the borrower lies
with the lender not the client's CPA.
February 2007, AICPA.
Professional Regulations. www.aicpa.org/
Chicago, IL 60604.
Professional Liability Risk Control, CNA,
333 South Wabash Ave., 39S, Chicago,
sented by CNA, which is solely respon-
sible for its content.
information, rather than advice or opin-
ion. It is accurate to the best of the
author's knowledge as of the date of
the article. Accordingly, this article
should not be viewed as a substitute
for the guidance and recommendations
of a retained professional. In addition,
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examples, please note that they are for
illustrative purposes only and any simi-
larity to actual individuals, entities,
places, or situations is unintentional and
purely coincidental. In addition, any
examples, including the sample letter,
are not intended to establish any stan-
dards of care, to serve as legal advice
appropriate for any particular factual sit-
uations, or to provide an acknowledge-
ment that any given factual situation is
covered under any CNA insurance poli-
cy. Please remember that only the rele-
vant insurance policy can provide the
actual terms, coverages, amounts, con-
ditions, and exclusions for an insured. All
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ject to change without notice.
of U.S. federal tax law and references to
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Reprinted with permission.