SSARS - Reviews

Question 1

Independence Required?

Answer 1

Yes

Question 2

Items obtained and issued

Answer 2

Engagement letter
Rep letter
Report

Question 3

Types of Procedures performed

Answer 3

Analytical
Inquires
Read FS
Reconcile to underlying records

Question 4

Risk Assessment procedures

Answer 4

focus the review procedures in the areas believed to be at higher risk of material misstatements. However, the accountant does not need to obtain an understanding of internal control for purposes of assessing control risk.

Question 5

Reporting Structure

Answer 5

Intro (4 sentences)
Management Responsibilities
Accountants Responsibilities
Accountants Conclusion

Question 6

Intro (4 sentences)

Answer 6

1. We have reviewed the accompanying financial statements of XYZ Company, which comprise the balance sheets as of December 31, 20X2 and 20X1, and the related statements of income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements.
2. A review includes primarily applying analytical procedures to management’s (owners’) financial data and making inquiries of company management (owners).
3. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. 4. Accordingly, I (we) do not express such an opinion

Question 7

Managements Responsibilities (1 sentence)

Answer 7

Management (Owners) is (are) responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

Question 8

Accountants Responsibilities (3 sentences)

Answer 8

1. Our responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.
2. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America.
3. We believe that the results of our procedures provide a reasonable basis for our conclusion

Question 9

Accountants Conclusion (1 sentence) (provides negative assurance)

Answer 9

1. Based on my (our) reviews, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

Question 10

Special Purpose Framework used.

Answer 10

Add an EoM paragraph
- stating that the financial statements are prepared in accordance with the special purpose framework and referencing the note to the financial statement describing the framework.

Question 11

If Known Departures from the applicable financial reporting framework exists

Answer 11

Add paragraph labeled “known departures” after conclusions

• identify departures and
• effects

Question 12

If adding Known departures paragraph is not sufficient to communicate the deficiencies…

Answer 12

withdrawal

Question 13

AVOID STATING:

Answer 13

That the FS are not in accordance with the applicable framework.

Question 14

Primary purpose

Answer 14

whether material modifications should be made to an entity’s financial statements to be presented in accordance with the applicable financial reporting framework