SSARS Engagements M1

Question 1

What are the types of services that we provide in general?

Answer 1

• Attest/Report = Assurance/Opinion = MUST BE INDEPENDENT
• Non-Attest/no report = No Assurance/ no opinion = do not need to be independent (except for AUP’s which must be independent).

Question 2

What determines preparation of financial statements?

Answer 2

• An accountant can prepare a working trial balance and prepare standard monthly journal entries without being required to comply with SSARS as long as the performance of these services does not carry forward into the preparation of financial statements.
• Bookkeeping and Preparing the Financial statements is a seperate engagement. In Bookkeeping we should only use QB as a tool to ensure the transactions are coded correctly. The client can print their own statements from QB. If we do it we should use our own software to prepare them with proper footnotes (if applicable).

Question 3

What type accounting services can be performed without following SSARS?

Answer 3

• Prepare a working trial balance.
• Prepare standard monthly journal entries

as long as the performance of these services does not carry forward into the preparation of financial statements.

Question 4

What are the procedures for a SSARS Compilation engagement?

Answer 4

• SSARS requires compiled financial statements to be
  accompanied by a compilation report even if the financial statements are not expected to be used by a third party.
• Each page of the financial statements is clearly marked to restrict its use if applicable.
• A written engagement letter is used to document the understanding with the client.
• A written representation letter is obtained from the client’s management.