Accounting and Review Services

Question 1

A compliation report will indicate:

Answer 1

(1) the prospective financial statements are presented by the responsible party (ordinarily management), (2) the practitioner compiled the information in accordance with AICPA standards, (3) a compilation is limited in scope and the practitioner does not provide an opinion or any form of assurance, (4) the practitioner has no responsibility to update the report, and (5) the firm signature and date of the compilation report.

Question 2

The authoritative body for accountant’s assocaiton with unaudited FS of an entity is:

Answer 2

The Accounting and Review Services Committee

Question 3

To compile FS the accountants should possess a general understanding of the nature of the entity’s:

Answer 3

business tranactions, the form of its accounting records, the stated qualifications of its accounting personnel, the accounting basis on which hte FS are to be presented, and the form and content of the FS.

Question 4

You can submit a compliation or review without following SSARS IF:

Answer 4

the plan is to 1) be used to assist the client and the client’s advisors in developing financial goals and objectives

2) will not be used to obtain credit, and
3) when nothing comes to the accountant’s attention that would lead him/her to believe that the statemnets will be used for credit or for nay other purposes.