What it is
A preparation engagement is a nonattest service: the accountant prepares financial statements and issues no report. Instead, each page of the statements must include a statement that no assurance is provided.
AR-C 70 still requires a written agreement signed by the accountant and management or those charged with governance. This template covers those terms.
When to use it
- Bookkeeping and outsourced accounting clients who need statements but no CPA report.
- Internal-use statements for owners or management.
What’s inside
- Objective: prepare statements under the stated framework, with no assurance
- The required “no assurance is provided” legend on each page
- Management responsibilities, including taking responsibility for the statements
- Handling of disclosures omitted or departures from the framework
- Fees and signature blocks for both parties
Standard cited
This template follows AR-C 70 (SSARS). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Is a report issued in a preparation engagement?
No. AR-C 70 does not require or allow a report on the prepared statements. The no-assurance legend on each page takes its place. If the legend cannot be placed on each page, AR-C 70 provides for a disclaimer in its place.
Does independence matter for a preparation engagement?
The accountant does not need to be independent under AR-C 70, because no assurance is given. Your AICPA Code obligations for nonattest services to attest clients still apply if you also audit or review the client.
Related templates
- Compilation Engagement Letter (AR-C 80)
- Review Engagement Letter (AR-C 90)
- Month-End Close Checklist (Excel)
Last updated 11/04/2026. All free templates.