When do the provisions of SSARS no. 1 apply?
Journal of Accountancy › Vol. 173 Nbr. 2, February 1992
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Summary
Statements on Standards for Accounting and Review Services: Compilation and Review of Financial Statements
Accountants may not be required to give financial reports to management when making financial presentations. This topic is covered in the Statements on Standards for Accounting and Review Services number one, Compilation and Review of Financial Statements (SSARS no.1). The distinction between a trial balance and a financial statement must be made, and whether or not computer-generated statements are produced. Actual financial statements must conform with SSARS no.1 unless they are drafts.See the full content of this document
Extract
When do the provisions of SSARS no. 1 apply?
Betty Montez, CPA, was engaged by Muller, Inc., to provide monthly accounting services consisting of write-up o cash receipts and disbursements journals and quarterly preparation of an adjusted trial balance. During one of Montez's visits to the company, Max Muller, the president, asked her to prepare some financial information for his brother-in-law, who is thinking of investing in the business.
Montez drafted the financial presentation shown in exhibit 1, page 63, and submitted it to Ray Oliver, CPA, the partner in charge of quality review at her firm. He returned the material to Montez with a note asking, "Where's the report." Montez contended a report was not required because paragraph 2 of Statements on Standards for Accounting and Review Services no. 1, Compilation and Review of Financial Statements, says an accountant need not adhere to the performance and reporting requirements of SSARS no. 1 when preparing a working tria...See the full content of this document
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