Compilation Engagements

Question 1

what are Limitations of compilation engagement

Answer 1

Relied upon to disclose errors, fraud, or noncompliance with laws and regulations

Question 2

what are Auditor’s Responsibilities

Answer 2

Must do the compilation based on ssars via aicpa

Question 3

Accepting the engagement with no knowledge

Answer 3

Must acquire knowledge prior to issuing the report

Question 4

Before issuing the report…

Answer 4

Read the F/S and consider if its free from obvious material errors

Question 5

Information provided by client

Answer 5

Not required to but can make inquiries or perform analytical procedures to verify info

Question 6

When to withdraw from engagement?

Answer 6

> Management didnt provide records or documents

> management doesnt make necessary adjustments because of departures from gaap

Question 7

Accountant report in compilation report includes:

Answer 7

> statement that management is responsible for F/S
Date the F/S covered
Include a statement that compilation was done according to SSARS of the AICPA
Accountant did not audit or review f/s or perform procedures
No opinion expressed
Include the date

Question 8

Additional Requirements

Answer 8

> each page states: “See accountant’s compilation report”

> Not required to be printed on letterhead or manually signed

Question 9

F/S prepared other than Framework (special Purpose)

Answer 9

Must indicate that it was prepared in special purpose framework

Question 10

Report omits all disclosures

Answer 10

> written down that disclosures were omitted