7.01 - ASSOCIATION WITH FINANCIAL STATEMENTS AND SSARS

Question 1

7.01 - ASSOCIATION WITH FINANCIAL STATEMENTS AND SSARS

Which of the following accounting services may an accountant perform without being required to issue a
compilation or review report under the Statements on Standards for Accounting and Review Services?

I. Preparing a working trial balance.
II. Preparing standard monthly journal entries.

Neither I nor II
I only
II only
Both I and II

Answer 1

Both I and II

EXPLANATION:

SSARS establish the standards for the performance of reviews, compilations, and financial statement preparation engagements.

Preparing a trial balance and preparing monthly journal entries are nonattest services that are not subject to the
requirements of SSARS, unless they are conducted as part of a financial statement preparation engagement, and require no
compilation or review report.