Introduction to Preparation Engagements

Description

Preparation engagements are the simplest and most flexible service that accountants perform under SSARS. Preparations allows accountants to assist clients with preparing financial statements without providing assurance or issuing a report on their work or the financial statements. This introductory course explains when a preparation engagement is appropriate, what AR-C Section 70 requires, and how to prepare clear, properly labeled financial statements. Through practical explanations and easy-to-follow examples, participants gain the foundational knowledge needed to perform preparation engagements efficiently and in compliance with professional standards. 

Highlights

• Purpose and scope of preparation engagements under SSARS
• How preparation engagements differ from compilations, reviews, and bookkeeping
• Required elements of the engagement letter
• Management's responsibilities vs. the accountant's responsibilities
• Preparing financial statements in accordance with the chosen reporting framework
• Required labeling of each page of the financial statements
• When notes may be omitted and how to disclose this
• Situations that fall outside a preparation engagement
• Documentation requirements for basic compliance

Objectives

• Describe the purpose and fundamental requirements of a preparation engagement under AR-C Section 70.
• Identify the responsibilities of management and the accountant when preparing financial statements without a report.
• Explain required labeling, disclosure options, and when omitted disclosures are permitted.
• Distinguish preparation engagements from compilations, reviews, and other nonattest services.

Designed For

CPAs, public accountants, and accounting staff who prepare financial statements for clients and need a foundational understanding of AR-C Section 70 preparation engagements