Preparation, Compilation, & Review

​SSARS 

The Statements on Standards for Accounting and Review Services (SSARS) provide guidance in performing preparation of financial statements, compilation, and review engagements. SSARS engagements tend to take much less time than audits and can be provided at a lesser cost. These services are not, however, as rigorous as an audit. The SSARS are issued by the AICPA.

CPAs can provide any of the following services as provided for in the SSARS: 

Preparation Engagement

AR-C 70 provides guidance for preparation of financial statement engagements. This standard allows CPAs to issue financial statements without a compilation report. A disclaimer (no assurance is provided) is required. Disclosures to the financial statements are not required. The CPA need not be independent.

Compilation Engagement

AR-C 80 provides guidance for compilation engagements. The CPA usually assists with the preparation of financial statements and then reads them to see if they appear appropriate. Disclosures to the financial statements are not required. A compilation report is required. The CPA need not be independent. 

Review Engagement

AR-C 90 provides guidance for review engagements. The CPA usually assists with the preparation of financial statements and then makes inquiries and creates analytics. These procedures provide the basis for a limited assurance report. A review report is required. The financial statements are full-disclosure. The CPA must be independent.

Here are my SSARS articles to assist you in your work.

Preparation Articles

AR-C 70

Compilation Articles

AR-C 80

Review Articles

AR-C 90
Obtain your copy of my book from Amazon

Preparation of Financial Statements and Compilation Engagements

Get it Now!

If you provide financial statements through preparation or compilation standards, this book should be your desktop reference. The clarity and simplicity provided ensure you comply with both the letter and intent of the standards. There are many examples and templates to help apply the standards in an efficient and comprehensive way.

Charles is a master at breaking down the details, illustrating, and contrasting preparation and compilation engagements, and pointing out potential pitfalls to be aware of.

Much more user-friendly and applicable to the small firm practitioner than the big-ticket reference manuals.

Don Vieira, CPA
Centinel Pacific Accounting, LLC
Wasilla, Alaska