Responding to Pressure to Provide CPA-to-Lender Comfort Letters

By Suzanne M. Holl, CPA

CPAs at times come under fire from banks and other lenders pressuring them to provide assurances regarding their clients' financial strength.

Many CPAs have shared their frustrations and concerns with CAMICO regarding veiled threats from aggressive brokers and lenders alleging that their clients won't qualify for a loan without a letter from the CPA supporting the client's loan qualifications. Some brokers have even suggested that the client should seek a "more cooperative" CPA.

Plan Ahead: Practice Continuation for Small Firms

By Suzanne M. Holl, CPA

No one likes to think about it, but as we age, some of us will become critically ill or injured, and some of us will experience a long-term disability. Family emergencies and obligations can also call CPAs away from their businesses for long periods of time.

What would happen to our clients in such a scenario? When a client needs attestation services to obtain financing or satisfy loan covenants, or another client needs to have a tax return prepared by a certain deadline, who will complete the work?

Crypto: Thinking Future Risk and Defensive Documentation

"Hope for the best, plan for the worst" — a very sound risk management approach. When it comes to your client being exposed to cryptoasset risk "plan for the worst" is necessary. No one at CAMICO, or anywhere else, knows whether cryptoassets will suffer a crash in value. What we at CAMICO do know is if it happens, your clients are likely to wonder why their CPA did not warn them. Remember, 36 years of jury research and experience informs us that the CPA's job, in the eyes of the jury, is to "advise of financial opportunity and warn of financial risk."

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