Call us at (816) 743-7700

5 Things You Need to Know About Preparation of Financial Statements Under the New SSARS No. 21 Guidance

By MarksNelson on May 17, 2016 in Articles, Assurance Services, Entrepreneurial Services

Preparation services performed in 2016 will be covered under the new Statement on Standards for Accounting and Review Services (SSARS) No. 21.  Submission of financial statements to a client who is not required to or has not engaged the accountant to perform an audit, review, or compilation must follow the new SSARS No. 21 guidance.   Here are 5 things to know if your accountant suggests these preparation services:

  1. Requires the accountant to obtain a signed engagement letter
  2. Requires and accountant to include a legend on each page of the financial statements stating that no assurance is being provided
  3. Does not require the accountant to be independent.
  4. May be applied to financial statements with or without disclosures
  5.  Previously known as ‘Management use only’ reports

If you are interested in learning more about preparation services, please contact your MarksNelson professional at 816-743-7700.

About the Author

MarksNelsonView all posts by MarksNelson
MarksNelson LLC works with clients to help safeguard and grow their businesses. Our ultimate goal is to help our clients to Move Forward. The firm provides Assurance, Accounting Services and Business Advisory, Business Valuation, Consulting, Cost Segregation, Employee Benefit Plan Audits, Litigation Support, Forensic Accounting, International Tax, State and Local Tax and Tax planning, advisory and compliance services. MarksNelson is a member of The Leading Edge Alliance, the second-largest international professional association of independently owned accounting and consulting firms, serving clients who need additional resources on a national or international level. MarksNelson has significant accounting and business advisory experience in the auto dealership, construction, insurance, manufacturing, distribution and real estate sectors. The firm was named among the 2014 Best Accounting Firms for Leadership Equity by the 2014 Accounting MOVE Project for its dedication to gender equity.