Different Types of Engagements

Question 1

To what services are Statements on Standards for Accounting and Review Services (SSARs) applicable?

Answer 1

Statements on Standards for Accounting and Review Services (SSARs) are applicable to reviews and compilations of the financial statements of private companies, that is, nonissuers.

Question 2

What is a compilation?

Answer 2

An compilation is an assembly of the financial records of a private company into a financial statement format without expressing any degree of assurance on the reliability of those financial statements

Question 3

What type of assurance is associated with an “audit” of an entity’s financial statements?

Answer 3

Positive assurance, which positive is considered a high level of assurance

Question 4

What type of assurance is associated with a “review” of an entity’s financial statements?

Answer 4

Negative assurance, which is considered a moderate level of assurance