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25 Cards in this Set

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What is SSARS?
Statements on Standards for Accounting and Review Services
What is a compilation?
Who can you do them form?
Is independence required?
Putting f/s together from numbers given to you by management
- only for non-publicly traded entities
- no independence required, but if you don't you have to state it
What is the lowest level of service that accountants can provide?
Compilation
- only required to review f/s for obvious errors (i.e. balance sheet balances)
What is considered a medium level of expertise?
Review
- knowledge of industry, client, and accounting system
What is considered the highest level of service by an accountant?
Audit
- considered expert when you do an audit
What is included in a compilation report
ALARD (CPA does very little)

Accordance with SSARS issued by AICPA
Limited to presenting f/s
Audit not done
Review not done
Disclaim an opinion
Do you need a management representation letter in a compilation?
NO
- its evidence, and we are not gathering evidence
What is a review?
-requireds a higher level of expertise and knowledge about client and industry
- substantaintly less in scope than audit
-**primarily: inquiries and analytic procedures (analytics)
What are analytics?
Drawing plausible relationships between financial and non financial data.

Ex: compare this years balance in allowance for bad debts to last years to see how it changed
If you do a review on a publicly traded company:
when can you do it
follow what standards
mgmt rep letter?
what is required?
- interim periods only
- US GAAS not SSARS
- obtain mgmt representation letter
- sufficient understanding of company's IC
If you do a review of a publicly traded company, and find a GAAP or disclosure problem how does the report change?
Add an explanatory paragraph BEFORE opinion paragraph
What is the objective of a review?
Provide limited assurance
- we are not aware of any material modifications that need to be made in conformity with US GAAP
If you've done the same or higher level of service in different years, what happens to the report?
add explanatory paragraph after opinion saying what you did the previous year
If you've done a lower level of service in a different year, how does the report change?
add explanatory paragraph after opinion paragraph saying what you did last year, and reissue last year's report
If doing a review or compilation as a successor auditor, what are the three options?
1. Reissue predecessors report
2. Add a paragraph about the predecessor's report (date, what it was)
3. Perform compilation or review on prior year and issue own report
What is a projection?
Given one or more hypothetical assumptions, what will be the client's financial position
- restricted use
What is a forecast?
To the best of the client's knowledge and belief, what will be its expected financial position in the future.
- general use
What are the three possible associations with projections and forecasts?
1. Examination
2. Compilation
3. Agreed Upon Procedures
What is an examination?
-similar to an audit, only not dealing with historical data, working with forecasts and projections
-objective is to give an opinion
What is a compilation (with forecasts & projections)
- Presenting, in the form of a projection or forecast, information supplied by management
- state that an examination is NOT done
What are agreed upon procedures?
- agree to apply certain procedures to projections and forecasts
In all three types of engagements relating to forecasts & projections, what 3 things must be stated?
1. Results may not be achieved
2. No updating responsibility
3. No negative assurance (cant say "nothing came to our attention..."). either give opinion or present findings
When do we use Attestation Standards?
Any other written conclusion about the reliability of a written assertion that is the responsibity of someone else (our client)
Audits = GAAS/SAS
Rev/Comps = SSARS
Any other = Attestation Standards
What are the 9 Attestation Standards?
TIP SE ACRD
Training
Independence
Planning

Supervision
Evidence (No IC)

Assertion identified
Conclusion
Reservations
Distribution (general vs. restricted)
What is an inherent limitations paragraph say?
-errors or fraud may occur and not be dectected
-cannot project into future