{"ok":true,"canonical_url":"https://dealroom.so/glossary/cpa-prepared-statements","api_url":"https://dealroom.so/api/public/glossary/cpa-prepared-statements","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cpa-prepared-statements","term":"CPA-Prepared Statements","group":"Reading the business","definition":"These are financial statements compiled, reviewed, or audited by a Certified Public Accountant. Lenders require these to verify the historical financial performance of the business, which is critical for underwriting the loan.","what_it_means":"For larger 7(a) loans, lenders often require CPA-prepared financial statements for the past three fiscal years, potentially including an audit or review. These provide a higher level of assurance than internally prepared statements. Scrutinize these during due diligence to confirm the business's profitability and cash flow.","url":"https://dealroom.so/glossary/cpa-prepared-statements","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"}],"related_questions":[{"question":"Do I need to provide personal financial statements for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-provide-personal-financial-statements-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-personal-financial-statements-are-required-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are typically required for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/what-types-of-personal-financial-statements-are-typically-required-for-an-sba-7-a-loan-app"},{"question":"Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?","url":"https://dealroom.so/sba-7a/questions/can-unverified-or-inconsistent-financial-statements-from-the-seller-cause-my-sba-loan-to-b"},{"question":"What kind of financial statements does the SBA 7(a) loan application require from my business?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-financial-statements-does-the-sba-7-a-loan-application-require-from-my-busine"},{"question":"What specific due diligence does the lender perform on the target business's financial statements for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-does-the-lender-perform-on-the-target-business-s-financial-sta"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — CPA-Prepared Statements","url":"https://dealroom.so/glossary/cpa-prepared-statements","source_type":"DealRoom Data"}}