Compilations And Reviews Flashcards

1
Q

Do review or compilation reports mention internal control?

A

No

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2
Q

For reviews, does the auditor’s responsibility paragraph define or describe what a review is?

A

No! Unlike audits and compilations, a review report describes what a review is in the latter part of the introductory paragraph.

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3
Q

Distinguish between assurance and attest engagements.

A

Assurance engagements are those where an accountant issues a report that enhances the degree of confidence of third parties and management about the outcome of an evaluation or measurement of financial statements against an applicable reporting framework.

Attest engagements are those assurance engagements requiring independence. (“ERA”)

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4
Q

What circumstances might require the addition of a separate paragraph for compilations and reviews?

A

GAAP departures/other applicable financial reporting framework
Inadequate disclosure
Emphasizing a matter (going concern doubt)

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5
Q

Which paragraphs mention GAAP in compilations? Reviews?

A

Introductory and Management’s Responsibility paragraphs for compilations. Management’s Responsibility and Limited Assurance paragraphs for reviews.

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6
Q

How might an accountant performing a review respond to client-imposed scope limit?

A

Withdraw from the engagement as the review is already a limited assurance engagement (disclaimer opinion).

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7
Q

What attest engagements require a management representation letter? How would an accountant respond to a client’s refusal to provide one for each of the types of engagements?

A

Audits and reviews. Disclaimer opinion for audits; withdraw for reviews.

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