SSARs - Reviews, Compilations, and Preparations Flashcards
What would be considered a reasonable basis for agreeing to the entity’s request to change the engagement from an audit to a compilation?
IF the entity’s principal creditors no longer require the entity to furnish audited financial statements
i.e. A change in circumstances
When should an accountant’s compilation report be dated as of?
THE date of “Completion of the compilation”
WHOM are SSARSs primarily useful for?
The preparation, compilation, and review of financial statements for Private Companies
What type of compilation report may be issued if the accountant is not independent with respect to an entity?
A compilation report with special wording that notes the accountant’s lack of independence
What are the primary procedures in a Review engagement?
Inquiries of management, analytical procedures, and obtaining a management representation letter
What is an example of a SSARSs engagement?
Generating financial statements of a nonissuer (i.e. Private Entity)
Where would management’s omission of substantially all disclosures ordinarily included in the financial statements for a Preparation engagement be located/
On the face of the financial statements
What should the accountant indicate in the compilation report when a compilation report to a nonissuer’s financial statements omits substantially all disclosures required by GAAP?
That the financial statements are not designed for those who are uninformed about the omitted disclosures
How may SSARSs be applied to other historical or prospective financial information
If they are Adapted as necessary in the circumstances
How many paragraphs does the standard report for a compilation and review have?
Compilation = (1) Paragraph
Review = (4) Paragraph(s)
When may an accountant accept an engagement to compile pro forma financial information (PFFI) of a nonissuer?
ONLY if the report on the complete financial statement is included with the PFFI
Where would an accountant report a matter he considers necessary to communicate in a review engagement when it is NOT presented in the financial statements?
In an Other Matter Paragraph
