18. SSARSs - Preparation, Compilation, and Review Engagements

Question 1

In order to perform a compilation, the accountant should obtain an understanding of

Answer 1

(1) the applicable financial reporting framework and (2) the significant accounting policies adopted by management.

Question 2

Limited assurance

Answer 2

Is also known as negative assurance.

Question 3

What does Pro forma finacial information (PFFI) show the effect on?

Answer 3

historical information that might have resulted if a transaction had occurred earlier.

Question 4

A review is in accordance with

Answer 4

Statements on Standards for Accounting and Review Services (SSARSs) issued by the AICPA.

Question 5

What is the objective of a compilation?

Answer 5

is to apply accounting and financial reporting expertise to assist management in the presentation of financial statements without undertaking to obtain or provide any assurance on them.

Question 6

According to AR-C 80,

Answer 6

the report on a compilation should indicate that no assurance is provided.