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.
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You might also be interested in... 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...
What types of engagements are performed under SSARS?
There are three different types of engagements that an accountant can perform under SSARS. This includes a review (for nonissuers only), a compilation, and a preparation engagement.
What type of procedures are performed in a review engagement under SSARS?
For a review engagement under SSARS, the accountant will perform limited procedure. Limited procedures consist of inquiry of management and analytical procedures.
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...
What types of engagements are performed under SSARS?
There are three different types of engagements that an accountant can perform under SSARS. This includes a review (for nonissuers only), a compilation, and a preparation engagement.
What type of procedures are performed in a review engagement under SSARS?
For a review engagement under SSARS, the accountant will perform limited procedure. Limited procedures consist of inquiry of management and analytical procedures.
