SSARS- General Principles

Question 1

SSARS covers what three types of engagements?

Answer 1

1) Reviews
2) Compilations
3) Preparation of financial statements

Question 2

Under SSARS there are two broad categories, what are they?

Answer 2

1) Unconditional- MUST (required to comply)

2) Presumptively mandatory- SHOULD (expected to comply)

Question 3

When would an accountant deviate from presumptively mandatory requirements?

Answer 3

Noncompliance is allowed if a procedure would be ineffective in achieving the intent

NOTE: The accountant should perform alternative procedures to achieve the intent of the presumptively mandatory requirement.

Question 4

When should you NOT accept an engagement under SSARS?

Answer 4

1) Unable to comply with independence issues
2) Information is unlikely to be reliable
3) Doubt about management integrity

Question 5

What are management responsibilities under SSARS?

Answer 5

• Selection of the Financial Reporting Framework
• Design, implementation, and maintenance of Internal Controls
• Prevention and detection of fraud
• Compliance with applicable laws and regulations
• Accuracy and completeness of the records
• Providing the accountant with access to all relevant information related to the fair presentation of the financial statements