Academic journal article Journal of Accountancy

Investment Adviser Checklist

Academic journal article Journal of Accountancy

Investment Adviser Checklist

Article excerpt

CPAs registered as investment advisers (see "To Register or Not, That's the Question," page 47) must adhere to a regulatory structure beyond that imposed on practicing CPAs, and they can expect a Securities and Exchange Commission or state agency audit of their personal financial planning practice. To be better prepared for an audit, keep the following records ready for inspection, because an audit can come without warning.

* A copy of partnership articles, articles of incorporation, charter, corporate minutes and stock records.

* The general ledger, summary ledgers, cash receipts and disbursements journals, checkbooks, bank statements, canceled checks and cash reconciliations, bills paid and accounts payable files.

* Copies of the most recent trial balance, balance sheet and income statement.

* A list of loans outstanding, including loans to and from current or previous clients.

* A list of all clients and terminated accounts.

* A list of all client discretionary accounts.

* A list of clients directly or indirectly related to the registrant or any of its associated persons.

* A list of related persons affiliated with other companies or business ventures (such as broker-dealers affiliated with the registrant).

* Correspondence files, client files, client billings, client contracts or advisory agreements, power-of-attorneys and all other written agreements. …

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