(A2, S2) Preparation, Compilation & Review

Question 1

When does SSARS not apply in regards to an accountant preparing financial statements?

Answer 1

• Preparation of personal financial statements
• Solely for submission to taxing authorities
• In conjunction with litigation services that involve pending or potential legal or regulatory proceedings
• In conjunction with business valuation services

Question 2

When reviewing a nonissuer’s financial statements, an accountant ordinarily makes inquiries concerning the entity’s procedures for recording and summarizing transactions.
True or False.

Answer 2

True.

Question 3

The accounting and review services committee is the authoritative body designated to promulgate standards concerning an accountant’s association with unaudited financial statements of a nonissuer.
True or False.

Answer 3

True.

Question 4

The date on the compilation report should be the date of the completion of the compilation.
True or False.

Answer 4

True.

Question 5

What should be included in an accountant’s report issued for a compiled financial statements of a nonissuer in accordance with SSARS?

Answer 5

• We were not required to perform any procedures to verify the accuracy or completeness of the information provided by management,
• The accountant has not audited or reviewed the financial statements.