[23K]

I don’t understand the question. I need a dumb down explanation

A CPA provides an entity with controllership or other management services that include the submission of financial statements. The CPA is required to follow the provisions of Statements on Standards for Accounting and Review Services when:

I. the CPA is not a stockholder, partner, director, officer, or employee of the entity.

II. the CPA is a stockholder, director, officer, or employee of the entity.

A.Both I and II

B.I only

C.II only

D.Neither I nor II

correct answer B = AR-C 60.A21 states that, “SSARSs provide the standards used for fulfilling the overall objectives of the accountant’s work. SSARSs address the general responsibilities of the accountant as well as the accountant’s further considerations relevant to the application of those responsibilities to specific topics.” SSARS 21 offers the provisions for when a CPA is performing controllership or other management services

AUD--52,68,83, expired. Retake = 74 RETAKE - 7.24.26
FAR--73,70,68,75
BEC-- 79
REG-- 68,62,75

[Anonymous]

A CPA is generally not allowed to be involved in management in any way. Which is why a controller would not be allowed to compile or review financial statements under SSARS.

[If I can, u can too!]

Independence is the key here. Review requires it (while Compilation does not) so you can't be a stockholder, partner, etc… Hope that helps.

If I can do it, you can do it too!

Certified CPA, 2016

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[23K]

Got it – thanks

AUD--52,68,83, expired. Retake = 74 RETAKE - 7.24.26
FAR--73,70,68,75
BEC-- 79
REG-- 68,62,75

[abouelela]

ref. AR Section 9080
https://www.aicpa.org/Research/Standards/CompilationReview/DownloadableDocuments/AR-00080_9.pdf

8. Applicability of Statements on Standards for Accounting and Review
Services When Performing Controllership or Other Management Services
.21
Question
—If the accountant is in public practice and provides an entity with controllership or other management services that entail the submission of financial statements, is the accountant required to follow the requirements of section 80?
.22
Interpretation
—If the accountant is in public practice as defined in ET section 0.400 of the AICPA Code of Professional Conduct and is not a stock-holder, partner, director, officer, or employee of the entity, the accountant is required to follow the performance and communication requirements of section
80, including any requirement to disclose a lack of independence.
.23
If the accountant is in public practice and is also a stockholder, part- ner, director, officer, or employee of the entity, the accountant may either (a) comply with the requirements of section 80, or (b) communicate, preferably in writing, the accountant's relationship to the entity (for example, stockholder, partner, director, officer, or employee). The following is an example of the type of communication that may be used by the accountant:
The accompanying balance sheet of Company X as of December 31, 20XX, and
the related statements of income and cash flows for the year then ended have
been prepared by [name of accountant], CPA. I have prepared such financial statements in my capacity [
describe capacity, for example, as a director] of Company X.
.24
If an accountant is not in public practice, the issuance of a report under SSARSs would be inappropriate; however, the previously mentioned communication may be used.
[Issue Date: July 2002; Revised: December 2010 to conform to SSARS No. 19
(formerly Interpretation No. 21 to section 100); Revised: January 2015.

CIA, CISA

[Author]

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