ExpertMedium1 markMultiple Choice
CPA · Question 66 · Area 4: Reporting
Which of the following is a requirement for 'Preparation' engagements under SSARS?
Which of the following is a requirement for 'Preparation' engagements under SSARS?
Answer options:
A.
The accountant must be independent.
B.
A report must be issued.
C.
No assurance is provided.
D.
The accountant must verify the accuracy of the data.
How to approach this question
Preparation = Just typing the numbers. No Independence, No Report, No Assurance.
Full Answer
C.No assurance is provided.✓ Correct
No assurance is provided.
A preparation engagement involves preparing financial statements pursuant to a specified financial reporting framework. It is a non-attest service, requires no independence, and provides no assurance.
Common mistakes
Confusing Preparation with Compilation (which requires a report).
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