Preparation engagements are the simplest and most flexible service that accountants perform under SSARS. Preparations allow 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.
This course features a live instructor and has been specifically designed for the NJCPA.
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
BENEFITS
- 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.
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
PREREQUISITES
None
ADVANCE PREPARATION
None