SSARS - preparation of FS

Question 1

SSARS is applicable to:

Answer 1

Non issuers

Question 2

Types of enagements and reports issued

Answer 2

Compilation - report - no assurance
Review - report - moderate (negative) assurance)
Preparation of FS - no report - no assurance

Question 3

2 types of professional requirements

Answer 3

Unconditional

Presumptive Mandatory

Question 4

Preconditions for Acceptance and Continuance of Engagements - Circumstances that may prevent acceptance

Answer 4

• ethical requirements will not be met
• necessary information is unavailable or unreliable
• reason to doubt managements integrety

Question 5

Preconditions for Acceptance and Continuance of Engagements - Prior to accepting the engagement, the accountant should

Answer 5

-determine competence
-determine acceptability of financial reporting framework
obtain the required agreement with management

Question 6

Independence requirements

Answer 6

Preparation of FS - none
compilation - none
Review - required

Question 7

Preparation of Financial Statements - Applies to:

Answer 7

1. preparation of financial statements
2. specific elements
3. supplementary information
4. Required supplementary information
5. pro forma financial information
6. prospective financial information
7. Preparing financial statements prior to audit or review by another accountant;
8. Preparing financial statements to be presented alongside the tax return;
9. Preparing personal financial statements for presentation alongside a financial plan;
10. Preparing single financial statements (e.g., just a balance sheet) with substantially all disclosures omitted; and
11. Preparing financial statements using general ledger information outside of an accounting software system.

Question 8

Preparation of Financial Statements - Does NOT apply to:

Answer 8

1. Audit, review, or compilations
2. preparation of information to taxing authorities
3. preparing FS as part of personal financial planning
4. preparing FS in connection with litigation services, or business valuation services
5. bookkeeping services

Question 9

Preparation of FS - Agreement on the Terms of the Enagements

Answer 9

1. objective
2. management responsibilities
3. auditors responsibilities
4. Each page must contain the words “no assurance provided”
5. limitations of the engagement
6. applicable financial reporting framework
7. whether the FS contain know departures from the applicable financial reporting framework (including misstatements or omissions of some or all of the required footnotes)

Question 10

Each Page should state

Answer 10

No assurance provided