[Anonymous]

Hello,

I am getting confused with the SSARS Applicability rules in regards to preparation.

Becker book it says the following:

SSARS Applicability- An accountant who is engaged to PREPARE, compile, or review unaudited financial statements of a nonissuer should comply with SSARS.

SSARS Do not Apply-

SSARS do not apply to to other accounting services provided by accounts, such as PREPARING one or a few adjusting or correcting entries, consulting on financial maters, preparing tax returns, rendering manual or automated bookkeeping or data processing services, and processing financial data.

Note if the accountant prepares many adjusting or correcting entries, this could be considered preparing of FS and SSARS would apply.

I am getting confused by the word prepare. How do you know when SSARS are applicable in preparing FS? Is it by the amount of work you are preparing? I am confused???!

Thanks!

[monikernc]

read the first pdf link that i posted it gives a good overview of the different types of engagements. the rest are links to the actual standards which are easy to read. finally, just reviewing the list of the standards for each type if engagement will help you start to understand the differences between them.

d these last quarter because i found them very helpful references.

https://www.aicpa.org/advocacy/state/downloadabledocuments/attest-services-chart-color-nonfillable.pdf

Links to the standards:

Auditing – use the Clarified, always AU-C
https://www.aicpa.org/research/standards/auditattest/pages/clarifiedsas.aspx

Attestation – always AT – https://www.aicpa.org/Research/Standards/AuditAttest/Pages/SSAE.aspx

Compilation and Review – AR, but Reviews are covered under some other standards, too, so watch out…
https://www.aicpa.org/RESEARCH/STANDARDS/COMPILATIONREVIEW/Pages/compilation%20and%20review%20standards.aspx

Ethics – AICPA Code of Professional Conduct https://pub.aicpa.org/codeofconduct/Ethics.aspx

PCAOB 5 for Issuers – An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements – https://pcaobus.org/Standards/Auditing/pages/auditing_standard_5.aspx

and then AICPA makes their Online Professional Library (OPL) available free for 6 months to anyone with an active NTS. some folks on here say it helps them learn more effective searches. you can submit your request here: https://www.aicpa.org/BecomeACPA/CPAExam/ForCandidates/HowToPrepare/Pages/literature.aspx

i didn't find the OPL to be helpful. but hey that's just me.

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[Anonymous]

Thank you!!

I will take a look at the links.

[YouCanDoIt]

Bump. Older post but so helpful for added clarity.
Also, I had no idea we could get FREE 6 month access to AICPA literature as CPA candidates.

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Won't know until you try.

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[Author]

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