What are Prepared Prepared Financial Statements?
Prepared financial statements applies when the accountant is engaged to prepare financial statements but is not engaged to perform an audit, review or a compilation on those financial statements. Preparation of Financial Statements is governed by Section 70 of the Statements on Standards for Accounting and Review Services (SSARSs) issued by the AICPA.
THE IMPORTANCE OF PREPARED FINANCIAL STATEMENTS
Prepared financial statements allow companies to have financial statements prepared at a lower cost. Prepared financial statements are synonymous with “internal use only” or “management level” financial statements. AR-C section 70 does not require a report, even when the financial statements are expected to be used or provided to a third party. Prepared financial statements are the byproduct of bookkeeping services in which the accountant produces the financial statements once the books are reconciled and in proper order.
GETTING FAMILIAR
In a Preparation of Financial Statements engagement, we must familiarize ourselves with your industry and our objective is to prepare financial statements in accordance with a specified applicable financial reporting framework. The accountant should obtain an understanding of the applicable financial reporting framework and the significant accounting policies intended to be used in the financial statement preparation.
DONE ACCURATELY EVERY TIME
When we present the prepared financial statements, we must state that we did not perform an audit, review, or compilation engagement on the financial statements and no assurance is provided on them.
WE STRICTLY ADHERE TO PROFESSIONAL STANDARDS
We are a fully licensed CPA firm and have the professional experience required of an accountant for prepared financial statements engagement. We comply with Statements on Standards for Accounting and Review Services (SSARSs) issued by the AICPA as well as state licensure and continuing education requirements.
