Product For Unaudited Financial Statements And Method For Qualifying The Eligibility For Such A Product

摘要

A system, product and method to increase the credibility of the unaudited financial statements of small and medium sized private enterprises combines such financial statements which satisfy eligibility criteria with an indemnity in favour of a named user of the unaudited financial statements for a loss which the user incurs as a consequence of those financial statements containing information that is materially incomplete or materially inaccurate. The financial statements are professionally compiled by a Certified Public Accountant in conjunction with that Accountant's completion of a related agreed-upon procedures engagement. The procedures are determined by the indemnity provider as being relevant and appropriate for the subject enterprise.

主权项

1. A method for qualifying the eligibility for a product which indemnifies to a predetermined monetary amount the intended user of the unaudited financial statements of a non-public enterprise having less than 500 employees or gross revenue of less than $50 million per annum, the method comprising the steps:
a) receiving by the issuer of the product the type or industry in which the enterprise operates and the reporting framework on which its financial statements are based; b) issuing by the issuer of the product two or more agreed-upon procedures predetermined according to the type of industry and reporting framework with the procedures to be performed by a CPA; c) receiving the unaudited financial statements; an accompanying compilation report, and a report on applying agreed-upon procedures in conjunction with the preparation of the unaudited financial statements, all prepared by a CPA, and d) qualifying the eligibility by:
i) checking that the compilation report is unqualified; andii) checking that there are no adverse findings of the agreed-upon procedures, wherein the product associated with the eligibility-qualified unaudited financial statements provides for the indemnity, to a predetermined monetary amount, to the intended user of those financial statements if the unaudited financial statements contain information that is materially incomplete or materially inaccurate; and e) issuing an indemnity which is referenced to and attached to a copy of the unaudited financial statements and accompanying compilation report.