AUD Prep: FYI -

Note
In the past, the SSARSs dealt with only two types of engagements: (1) reviews; and (2) compilations. The clarified SSARSs added a third type of engagement: engagements to prepare financial statements for a client without issuing an accompanying report, which is the focus of AR-C 70, Preparation of Financial Statements. When engaged to prepare financial statements, the accountant is also required to comply with the requirements of AR-C 60, General Principles, including meeting the preconditions for accepting the engagement. The accountant is not required to be independent for a preparation engagement.

Question

FYI -

Note
In the past, the SSARSs dealt with only two types of engagements: (1) reviews; and (2) compilations. The clarified SSARSs added a third type of engagement: engagements to prepare financial statements for a client without issuing an accompanying report, which is the focus of AR-C 70, Preparation of Financial Statements. When engaged to prepare financial statements, the accountant is also required to comply with the requirements of AR-C 60, General Principles, including meeting the preconditions for accepting the engagement. The accountant is not required to be independent for a preparation engagement.

Monique Tyler · Accepted Answer

Prepare the Financial Statements

Each page of the financial statements should include a statement that “no assurance is provided” (or other words to that effect). The accountant's name (or firm) need not be identified. If that statement cannot be added to each page, the accountant should issue a disclaimer as to any assurance or perform a compilation engagement in accordance with AR-C 80 or withdraw from the engagement.

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