Introduction to Preparation Engagements
2.00 Credits
Member Price $105
Non-Member Price $135
Overview
Preparation engagements are the simplest and most flexible service that accountants perform under SSARS. Preparations allow accountants to assist clients with preparing financial statements without providing assurance or issuing a report on their work or the financial statements. This introductory course explains when a preparation engagement is appropriate, what AR-C Section 70 requires, and how to prepare clear, properly labeled financial statements. Through practical explanations and easy-to-follow examples, participants gain the foundational knowledge needed to perform preparation engagements efficiently and in compliance with professional standards.
Highlights
• Purpose and scope of preparation engagements under SSARS • How preparation engagements differ from compilations, reviews, and bookkeeping • Required elements of the engagement letter • Management’s responsibilities vs. the accountant’s responsibilities • Preparing financial statements in accordance with the chosen reporting framework • Required labeling of each page of the financial statements • When notes may be omitted and how to disclose this • Situations that fall outside a preparation engagement • Documentation requirements for basic compliance
Prerequisites
None
Designed For
CPAs, public accountants, and accounting staff who prepare financial statements for clients and need a foundational understanding of AR-C Section 70 preparation engagements
Objectives
• Describe the purpose and fundamental requirements of a preparation engagement under AR-C Section 70. • Identify the responsibilities of management and the accountant when preparing financial statements without a report. • Explain required labeling, disclosure options, and when omitted disclosures are permitted. • Distinguish preparation engagements from compilations, reviews, and other nonattest services.
Leader(s):
Leader Bios
Daryl Krause
Daryl G. Krause, CPA, has CPA Certifications and he practices in: Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin as Manager & CEO of his CPA firm, which he founded in 2005. Previously he enjoyed 23 years of diversified responsibilities with Ernst & Young. Industries he served included manufacturing, construction, real estate and financial services. Daryl has led more than 100 courses for the AICPA in 27 states and the District of Columbia. He also performs technical reviews during the development of certain AICPA courses.
Daryl was the Ohio Valley Area Director of Employee Benefit Plan Services specialty audit practice for 8 years responsible for the technical accuracy and quality of over 300,000 hours of employee benefit plan audit effort. Roles included sign-off partner for approximately one third of the entire area’s engagements, independent reviewer on approximately 100 additional plans per year and technical advisor for all work.
As Senior Manager in the Entrepreneurial Services group for 3 years he managed a portfolio of corporate audit client relationships. Roles included providing SEC reporting assistance to new public companies, assisting in due diligence on potential acquisitions and helping companies improve their controls and financial reporting processes.
He served in E&Y’s National Professional Development group as a Senior Manager for 5 years. Roles included designing, developing and delivering core curriculum Audit and Entrepreneurial Services training programs for the entire U.S. practice. Part of the 11 member team that completed the development effort to introduce the Ernst & Young Audit Approach training for Staff through Partner following the Ernst & Whinney and Arthur Young merger, which was deemed a critical success factor for the newly formed Ernst & Young.
Non-Member Price $135
Member Price $105