M2 Preparation Engagements

Question 1

What is the intro of a preparation engagement letter

Answer 1

“You have requested we Prepare the financial statements”

Question 2

What are the auditors responsibilities in an preparation engagement

Answer 2

-“The objective of our engagement is to prepare the F/S in accordance with accounting principles generally accepted in the united states”
-“In accordance with SSARS”
-“We are not required to, and will not verify the completeness of the information”
-“Our engagement cannot be relied upon to identify or disclose any misstatements”

Question 3

When F/S are prepared in accordance with a SPF a description of the framework must be included in:

Answer 3

Face or notes

Question 4

Accountants may omit disclosures if:

Answer 4

-There is a disclosure of omission
-The reason for omission is not to mislead

Question 5

A preparation engagement does not require the accountant to perform control testing.

Question 6

Each page of the financial statements in a preparation engagement should include:

Answer 6

A statement indicating that no assurance is provided.