Preparation Engagements
Preparing Financial Statements
In a preparation engagement, the accountant assists management by preparing financial statements but does not issue a report or provide any assurance. The accountant does not verify the accuracy or completeness of information provided by management.
- No report is issued.
- No assurance is provided.
- Management is responsible for the financial statements.
- Each page should indicate that no assurance is provided unless an appropriate disclaimer is included.
Note
Preparation engagements require an engagement letter but do not require independence.
Summary
Preparation engagements involve organizing financial information without expressing any form of assurance.