AICPA vs Probate

A litigation attorney appeared in court for his client with an accounting for a trust. The accounting covered the period of 2008 to 2012 and was prepared by a CPA in the San Diego Area. The probate court rejected this accounting and rejected the next two that the CPA did.

The frustrated attorney asked if I could review the accounting and find out why it was rejected by the court. After reviewing the accounting, I discovered that it was prepared using the standards of the American Institute of CPAs (AICPA) for business financial statements when it should have been prepared by rules of the Probate Code. The probate accounting gives detailed information and follows a very different format compared to rules used for business financial statements. Once the accounting was re-done using the Probate Code, the accounting was accepted by the court.

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