Blue Co., a privately-held entity, asked its tax accountant, Cook, a CPA in public practice, to reproduce Blue's internally-prepared interim financial statements on Cook's computer when Cook prepared Blue's quarterly tax return. Cook should not submit these financial statements to Blue unless, at a minimum, Cook complies with the provisions of
A) Statements on Responsibilities in Tax Practice.
B) Statements on Standards for Accounting and Review Services.
C) Statements on Responsibilities in Unaudited Financial Services.
D) Statements on Standards for Attestation Engagements.

Question

Quizplus · Accepted Answer

The best choice is Statement on Standards for Accounting and Review Services (SSARS) because it governs the preparation, compilation, and review of financial statements. Cook is preparing the financial statements for Blue, but not performing a review or audit, so the preparation standards outlined in SSARS are relevant to this situation. The other options are not applicable to this scenario.

Blue Co, a Privately-Held Entity, Asked Its Tax Accountant, Cook, a a CPA