The New Preparation of Financial Statements Standard (SSARS 21)
13
Preparation of Financial Statements Section 70 of SSARS 21
-
Upload
charles-b-hall-cpa-cfe -
Category
Business
-
view
4.420 -
download
0
Transcript of The New Preparation of Financial Statements Standard (SSARS 21)
Preparation of Financial StatementsSection 70 of SSARS 21
Issue Financial
Statements
without a
Compilation Report
SSARS 8
Management-Use-Only
Superseded
Preparation Standard allows for
the dissemination of financial
statements to
third parties
(without a compilation report)
Not Applicable When…
The accountant prepares financial statements…
• and is engaged to perform an audit, review, or
compilation of financial statements
• solely for submission to taxing authorities
• for inclusion in written personal financial plans
• in conjunction with litigation services that involve
pending or potential legal or regulatory proceedings,
or
• in conjunction with business valuation services
Preparing
Financial Statements
Merely Assisting in
the Preparation of
Financial Statements
(Bookkeeping)
Section 70 AppliesSection 70
Doesn’t Apply
Examples of
Bookkeeping• Preparing or proposing certain
adjustments, such as those applicable to
deferred income taxes, depreciation, or
leases
• Drafting financial statement notes
• Entering general ledger transactions or
processing payments in accounting
software
Required Wording
• “No Assurance is Provided” on each page
or
• Provide Disclaimer (see next slide)
Sample Disclaimer
The accompanying financial statements of XYZ Company as of and for the year ended December 31, 20XX, were not subjected to an audit, review, or compilation engagement by me (us) and, accordingly, I (we) do not express an opinion, a conclusion, nor provide any assurance on them.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date]
Signed Engagement
Letter
is Required
Accountant Can Still
Issue Financial Statements
with a Compilation Report
(but only when engaged
to do so)
Effective Date
• Financial statements prepared for
periods ending after December 15, 2015
• Early implementation is permitted—can
be used now
Contact Information
Created by Charles Hall
Quality Control Partner at
McNair, McLemore,
Middlebrooks & Co., LLC
Macon, Georgia
Email: [email protected]
![[P-ACCT3] Accounting and Auditing Update Followup Workshop ... · SSARS 21—Format • SSARS No. 21 is formatted into four separate sections: – Section 60, General Principles for](https://static.fdocuments.in/doc/165x107/5f07cc927e708231d41ecdce/p-acct3-accounting-and-auditing-update-followup-workshop-ssars-21aformat.jpg)
