An accountant is required to comply with the provisions of Statements on Standards for Accounting and Review Services when: I. Typing client-prepared financial statements, without modification, as an accommodation to a client.
II) Preparing standard monthly journal entries for depreciation and expiration of prepaid expenses.
A)I only.
B)II only.
C)Both I and II.
D)Neither I nor II.

Question

Quizplus · Accepted Answer

The provisions of Statements on Standards for Accounting and Review Services (SSARS) apply when an accountant is engaged to prepare or review financial statements. Typing client-prepared financial statements without modification or preparing standard monthly journal entries does not constitute an engagement to prepare or review financial statements under SSARS.

An Accountant Is Required to Comply with the Provisions of Statements