SSARSs—Preparation of Financial Statements

Question 1

What should an accountant document for a preparation engagement?

Answer 1

The accountant should document the preparation engagement in enough detail to clearly show the work performed, including:

1. )The engagement letter (or other written documentation)
2. )A copy of the financial statements prepared

Question 2

When the accountant has prepared an entity’s financial statements in accordance with the SSARSs, what statement should be added to each page of the financial statements?

Answer 2

Each page should include a statement that “no assurance is provided” (or similar words to that effect).

Question 3

What are the accountant’s responsibilities for a preparation engagement in accordance with the SSARSs when the financial statements omit substantially all disclosures required by the applicable financial reporting framework?

Answer 3

The accountant should discuss the matter with management and disclose the omission either on the face of the financial statements or in a note to the financial statements. (If the accountant believes that the omission was intended to mislead financial statement readers, the accountant should not prepare the financial statements.)

Question 4

What are the accountant’s documentation requirements when the accountant did not comply with a presumptively mandatory requirement of the SSARSs?

Answer 4

The accountant must document the reason(s) for the noncompliance and how alternative procedures satisfied the intent of that presumptively mandatory requirement.

Question 5

What are the three different types of engagements associated with the SSARSs?

Answer 5

Reviews
Compilations
Preparation of financial statements