SSARs-preparation of Financial statements

Question 1

preparation engagements

Answer 1

must meet preconditions
obtain written agreement for terms of engagement (engagement letter)
no report issued for preparation engagement
accountant is not required to be independent because no assurance is provided
each page of F/s should say “no assurance is provided”
obtain understanding of framework and policies
management take full responsibility for significant judgements

Question 2

if managemen adopts special purpose framework

Answer 2

reveal in a note or in face of f/s

Question 3

if f/s know departures then

Answer 3

discuss with management and correct them or disclose them in the f/s

Question 4

document

Answer 4

have copy of engagement letter
copy of f/s prepared
document reasons for noncompliance with a “presumptively mandatory requirement”

Question 5

this section does not apply to

Answer 5

bookkeeping services
tax prep
f/s as part of personal financial planning
f/s associated with litigation services or business valuation