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  • What is a preparation engagement under SSARS?

    Preparation engagements offer prepared financial statements on behalf of the company. Basically, the accountant takes the financial information from the company and prepares the financial schedules for management. The financial statements do not need to state that they were performed by an external accountant. The accountant is not required to be independent in a preparation engagement.

  • Is assurance provided in a compilation engagement?

    No, zero assurance is provided in a compilation engagement. In a compilation engagement, the accountant is basically compiling the financial statements for management, so the accountant cannot express an opinion on the fairness of the financial statements.

  • What is a compilation engagement?

    In a compilation engagement, the accountant basically reads the financial statements that were prepared by management and determine if they are appropriate in form and free from obvious material errors. Independence is not required in compilation engagements, however, if the practitioner is not independent, they must make that disclosure on every page of the compilation report.