Accounting and Review Services Flashcards
The appropriate standards for reiviews that are for interim (ordinarily quarterly) financial statements of either public or nonpublic companies (public and nonpublic standards very similar)
SAS reviews (Standards on Auditing Standards)
Authoritative literature for reivews that are only for nonpublic companies that are most frequently performed on annual fiancial statements of companies that choose nto to have an audit
SSARS (Statements on Standardsfor Accounting and REview Services–issued by AICPA) Reviewes
A type of accounting service that involves assisting management in presenting fianncial information in the form of financial statements—an attest service, NOT an assurance service
Compilations
Authoritative standards for compilation services
Statements on STandards for Accounting nad REview Services (SSARS)
An accounting service with the objective to obtain limited (negative) assurance that there are no material modifications that should be made to the financial statements in order for hte statements to be in conformity withthe appplicable financial reporting framework—both an assurance and attest service
Review service
Pronouncements htat apply to non-issuers
AICPA
Prononoucements that apply to issuers
PCAOB
The process of presenting ot a client or third parties financial statemetns thathte accountant has prepared either manually or through the use of computer software
“submitting financial statements”–CPA should not submit unaudited F.S. of a nonissuer unless at amniumum performs a compilation
An engagement in which an accountatn expresses a conclusion desgiend to enhance the degree of confidence of third parties and amangement about hte outcome of an evaluation or measurement of the financial statements (subject matter) against hte applicable finanical reporting framework
Assurance engagement
An engagement that requires independence in both mind and appearance in which the accountants inssue an examination, review, or agreed-upon procedure report on subject matter or aon an assertion about subject matter that is the responsiblity of another party
Attest engagement
A set of criteria used to determine measurement, recognition, presentation and disclosure of all material items appearing the financial statements; ex. GAAP, IFRS
Financial reporting framework
A definitie set of criteria, other than GAAP or IFRS, having substantial support underlying the preparation of financial statemetns prepare dpursuant to that basis (ex. tax and cash basis accounting)
Other Comprehensive Basis of Accounting (OCBOA)
The responsible party in a review or compilation enagement
Management
Persons who understand the flimations of the compilation or review and of financial statements; accountant has no responsbility to identify these users
Intended users
