In a preparation service, if the financial statements are expected to be used by a third party, the accountant must provide at least minimal assurance on the financial statements.

Question

Quizplus · Accepted Answer

In a preparation service, the accountant is only responsible for preparing financial statements based on the client's information, and no assurance is provided. Third parties should not rely on these statements and should seek a higher level of assurance, such as a compilation or review engagement.

In a Preparation Service, If the Financial Statements Are Expected