An attest client is a company, organization, or individual that engages an external accounting firm to perform attest services, such as audits, reviews, or examinations of financial statements or other financial information. The primary goal of these attest services is to provide an independent, professional opinion on the accuracy, completeness, and compliance of the financial information with the applicable accounting standards (e.g., GAAP, IFRS) or regulatory requirements.
Attest clients typically seek these services to build trust and credibility with their stakeholders, such as investors, lenders, regulators, or customers, by demonstrating that their financial information has been independently examined and verified by a qualified professional. Attest services can help improve the confidence of stakeholders in the company’s financial reporting, management practices, and internal controls.
Example of Attest Client
Here’s an example of an attest client scenario:
ABC Corporation is a growing technology company that is planning to go public with an initial public offering (IPO). To prepare for the IPO, the company needs to have its financial statements audited to comply with the requirements of the Securities and Exchange Commission (SEC) and to establish credibility with potential investors.
ABC Corporation engages XYZ Accounting Firm, a reputable accounting firm with expertise in auditing technology companies. As the attest client, ABC Corporation provides all the necessary financial records and information to XYZ Accounting Firm. The accounting firm then conducts an independent audit of ABC Corporation’s financial statements, assessing their accuracy, completeness, and compliance with Generally Accepted Accounting Principles (GAAP).
Upon completion of the audit, XYZ Accounting Firm issues an audit report with their professional opinion on the fairness of ABC Corporation’s financial statements. The audit report helps instill confidence in potential investors and ensures regulatory compliance for the IPO process.