Financial Statements

Financial Statement Services

AR-C 70: Preparation of Financial Statements.

The guidance from the AICPA, Statements on Standards for Accounting and Review Services 21 (SSARS 21), provides a much-needed framework for firms who want to provide additional services to their clients. 

Section 70 of the standard, effective for periods ending on or after December 15, 2015, introduces a new level of service: preparation of financial statements. This is ideal for clients who need financials, but don’t want to go through the expense or complexity of a compilation, review or audit.  

The types of services for which SSARS 21 Section 70 applies: 

  • Preparation of financial statements at the request of a client 
  • Preparation of financial statements prior to audit or review by another accountant 
  • Preparation of a single financial statement, such as an income statement with substantially all relevant disclosures omitted. 

Other covered services:

Section 70 is not limited to the preparation of historical financials. This guidance also applies to prospective financials as well as to these other services: 

  • Specified elements, accounts, or items of a financial statement, such as schedules of rentals, royalties, profit participation or provision for income taxes. 
  • Supplementary information. 
  • Required supplementary information. 
  • Pro forma financial information. 
  • Prospective financial information, including budgets, forecasts or projections.  

As part of our engagement, we will issue a disclaimer report that will state that the Financial Statements were not subjected to an audit, review, or compilation engagement by us and, accordingly, we do not express an opinion, a conclusion, nor provide any assurance on them.


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