This document discusses the preparation of financial statements under Section 70 of SSARS 21, which allows the issuance of statements without a compilation report in certain circumstances. It details the situations where the accountant is engaged for preparation and emphasizes the required disclaimer wording. The document also outlines effective dates and the importance of an engagement letter for issuing financial statements.

1. Preparation of Financial Statements
Section 70 of SSARS 21

2. Issue Financial
Statements
without a
Compilation Report

3. SSARS 8
Management-Use-Only
Superseded

4. Preparation Standard allows for
the dissemination of financial
statements to
third parties
(without a compilation report)

5. Not Applicable When…
The accountant prepares financial statements…
• and is engaged to perform an audit, review, or
compilation of financial statements
• solely for submission to taxing authorities
• for inclusion in written personal financial plans
• in conjunction with litigation services that involve
pending or potential legal or regulatory proceedings,
or
• in conjunction with business valuation services

6. Preparing
Financial Statements
Merely Assisting in
the Preparation of
Financial Statements
(Bookkeeping)
Section 70 Applies
Section 70
Doesn’t Apply

7. Examples of
Bookkeeping
• Preparing or proposing certain
adjustments, such as those applicable to
deferred income taxes, depreciation, or
leases
• Drafting financial statement notes
• Entering general ledger transactions or
processing payments in accounting
software

8. Required Wording
• “No Assurance is Provided” on each page
or
• Provide Disclaimer (see next slide)

9. Sample Disclaimer
The accompanying financial statements of XYZ Company as of
and for the year ended December 31, 20XX, were not subjected
to an audit, review, or compilation engagement by me (us) and,
accordingly, I (we) do not express an opinion, a conclusion, nor
provide any assurance on them.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date]

10. Signed Engagement
Letter
is Required

11. Accountant Can Still
Issue Financial Statements
with a Compilation Report
(but only when engaged
to do so)

12. Effective Date
• Financial statements prepared for
periods ending after December 15, 2015
• Early implementation is permitted—can
be used now

13. Contact Information
Created by Charles Hall
Quality Control Partner at
McNair, McLemore,
Middlebrooks & Co., LLC
Macon, Georgia
Email: chall@mmmcpa.com