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15 Cards in this Set
- Front
- Back
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What do auditors have to comply with when performing compilations or reviews?
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Standards for Accounting and Review Services (SSARS)
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What type of assurance/independence do compilations provide/require?
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None. Information is the representation of management.
No independence required. |
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What to do if compilations are used by third parties?
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Must issue compilation report
State no opinion or assurance |
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If compilations are not used by third parties
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ID services performed and limitations on FS use
Each page - "Restricted for Management's use only" No compilation report |
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Compilations may use non-GAAP or inconsistent GAAP if
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basis/inconsistencies are disclosed
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What is included in compilation report
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Performed in accordance with SSARS - AICPA
Limited to presenting mgt's info in form of FS FS not audited or reviewed No opinion or assurance Dated as of completion Each page - "See Accountant's Compilation Report" If not independent - last paragraph: "We are not independent with respect to X Company" |
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The accountant may compile FS of a NONPUBLIC company when substantially all disclosures are omitted if...
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Omission indicated in report
Omission not intended to make FS misleading |
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What assurance/independence do reviews provide/require?
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Limited (negative) assurance
Independence is required. |
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What does a review not contemplate?
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Internal control
Assessing fraud risk Test of accounting records Examination of source docs |
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Reviews require mgt rep letter acknowledging responsibility for
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Fair presentation of FS
Complete & truthful responses to inquiries Prevention/detection/disclosure of fraud |
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What about internal control in reviews?
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The accountant does not obtain an understanding of IC or assess control risk in a review
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What should a review report state?
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SSARS - AICPA
FS responsibility of mgt Review consists of inquiries & analytical procedures Review much less than audit Limited assurance No opinion Acct not aware of material modifications needed to conform to GAAP Dated Each page - "See Accountant's Review Report" |
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The review report may not refer to a predecessor accountant by name unless...
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The predecessor's practice was acquired or merged.
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A continuing accountant who performs the same or a higher level of service than last year should
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update his/her report on the FS of a prior period with those of the current period
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A continuing accountant who performs the same or a lower level of service should either
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Include separate paragraph in his/her repot with descr, of prior responsibilities
or Reissue PY report |
