Questions and Answers
What is the first step when an engagement is out of scope?
What is the condition to proceed with the engagement?
What happens if a majority of expenses from 2022 were not entered on the return?
What is the final step after the client fixes the 2022 return?
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What is the purpose of the OOS snippet?
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Where should you create your Google Folder for the client?
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What is the naming convention for the subfolder in the Workpapers Shared Drive?
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What should you do after moving the Biz Workbook file to the subfolder?
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What is the purpose of copying the link to the workbook?
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What may happen if you fail to add the link to the workbook in Notes for the QRT reviewer?
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Study Notes
Out of Scope Engagement
- When an engagement is out of scope, specific steps must be taken before releasing the client and closing the engagement.
Correcting 2022 Return Errors
- If the 2022 return was not prepared correctly, discuss the issue with the client.
- If minor adjustments are required, such as adding a journal entry (JE) for 2022 depreciation, request the client to make the correction.
- Once the correction is made, verify that the 2022 return matches the 2022 financial statements.
OOS Engagement
- If a majority of 2022 expenses were not entered on the return or depreciation was not calculated, the engagement is considered out of scope (OOS).
- Notify the client using the OOS snippet, informing them to fix the 2022 return before returning to FS Business Tax.
- Close the engagement once the client has been notified.
Creating a Client Folder in Workpapers Shared Drive
- Create a Google Folder for the client in the Workpapers Shared Drive using the CTO number as the name (e.g., cto_ee0e3475-0cf2-40b1-8ff8-cb58618131f0_SC).
Setting Up the Biz Workbook
- Create a copy of the Biz Workbook by clicking the provided link.
- Rename the file to match the CTO number (e.g., cto_ee0e3475-0cf2-40b1-8ff8-cb58618131f0_SC).
- Move the file to the subfolder created in step 2 using File > Move.
Sharing the Workbook
- Verify the file is in the subfolder by checking File > Details.
- Click 'Share' in the upper right corner, then 'Copy Link' in the lower left corner, and click Done.
- Add the link to the workbook to the Notes for the QRT reviewer to access.
Importance of Sharing the Workbook
- Failing to share the workbook link will result in signer revisions and delays in filing the client's return.
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Description
Steps to take before closing an accounting engagement, including reviewing and correcting financial statements and tax returns.
