What is Preparation engagement?
In short
In a preparation engagement, an accountant prepares financial statements for a client but provides no assurance and issues no report. It is a nonattest service.
Key takeaways
- Each page of the statements must state that no assurance is provided, or a disclaimer must be issued.
- The accountant doesn't have to determine whether they are independent.
- A compilation, by contrast, includes a compilation report.
Where it's tested
AUD: Reviews, Compilations & Agreed-Upon Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a SSARS preparation engagement, the accountant: