When does a lender request become an attest engagement?
A lender request starts looking like an attest engagement when it asks the CPA to perform procedures and communicate findings or a conclusion about subject matter, such as revenue deposits, financial statement amounts, compliance with a covenant, or another measurable assertion.
The CPA should not treat that as an informal letter layered onto tax preparation. The engagement needs the right standard, scope, users, criteria, procedures, report language, independence analysis when required, and documentation. In some cases, agreed-upon procedures may fit because the CPA reports findings without giving an overall conclusion.
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