Wiley Practitioner's Guide to GAAS 2020

61AR-C 70 Preparation of Financial Statements

Scope

Objectives and Limitations of Preparation Engagements

Relevant Standards

Independence

Definitions of Terms

Determining the Type of Engagement

Illustration

Requirements

Illustration—Steps in an Engagement to Prepare Financial Statements

Acceptance and Continuance of Client Relationships and Preparation Engagements

Engagement Terms

Preparing Financial Statements

Documentation Requirements

Illustration—An Engagement Letter for an Engagement to Prepare Financial Statements in Accordance with Accounting Principles Generally Accepted in the United States of America (AR-C 70.A22)

SCOPE

AT-C 70 applies when an accountant in public practice is engaged to prepare

• Financial statements,
• Prospective financial information, or
• Other historical financial information

This section does not apply when an accountant prepares financial statements or prospective financial information

• and is engaged to perform an audit, review, or compilation of those financial statements,
• solely for submission to taxing authorities,
• for inclusion in written personal financial plans prepared by the accountant,
• in conjunction with litigation services that involve pending or potential legal or regulatory proceedings, or
• in conjunction with business valuation services.

• (AR-C 70.01)

OBJECTIVES AND LIMITATIONS OF PREPARATION ENGAGEMENTS

Relevant Standards

It is important to note that the requirements in AR-C 60 apply to all SSARS engagements, including preparation ...