AUD 6.1 - SSARS Engagements

Question 1

CPAS can perform three levels of service with respect to unaudited financial statements of a nonissuer:

Answer 1

Preparation
Compilation
Review

Question 2

What level of assurance and independence from the auditor is required for preparations?

Answer 2

No assurance is provided
No independence required

Question 3

What level of assurance and independence from the auditor is required for compilations?

Answer 3

No assurance is provided
If not independent, the auditor must add a paragraph stating so

Question 4

What level of assurance and independence from the auditor is required for review?

Answer 4

Limited assurance
Independence is required

Question 5

When an accountant performs more than one service (compilation and an audit for example), what report should be issued?

Answer 5

The report for the highest level of service rendered

Question 6

Who is the authoritative body designated to issue pronouncements in connection with unaudited financial statements of nonissuers? What are the pronouncements issued called?

Answer 6

The accounting and review services committee of the AICPA
Statements on standards for accounting and review services (SSARS)

Question 7

If the accountant prepares MANY adjustments or correcting entries, this would be considered what?

Answer 7

Preparation of the financial statements and SSARS would apply

Question 8

SSARS does not apply to…

Answer 8

Reviews of interim financial information of nonissuers whose annual financial statements are audited

Question 9

Preparation, compilation, and review engagements (SSARS engagements) include what 3 parties?

Answer 9

Management
Accountant in the practice of public accounting
Intended users

Question 10

What are the responsibilities of management in a SSARS engagement?

Answer 10

The financial reporting framework and internal controls

Question 11

SSARS engagements require what?

Answer 11

Engagement letter

Question 12

If distributing an accountants compilation or review report on financials outside of the US, what report should be used?

Answer 12

A report in accordance with SSARS
Or
A report in accordance with another set of compilation or review standards

Question 13

If distributing an accountants compilation or review report on financials inside the US, what report should be used?

Answer 13

A report in accordance with SSARS