Wiley Practitioner's Guide to GAAS 2022

64AR-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
  • Acceptance and Continuance of Client Relationships and Preparation Engagements
  • Engagement Terms
  • Preparing Financial Statements
• Illustration—an Engagement Letter for an Engagement to Prepare Financial Statements in Accordance with Accounting Principles Generally Accepted in the United States of America

SCOPE

AR-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 engagements. In addition to the guidance in this chapter, readers should apply the requirements ...