Statements on Standards for Accounting and Review Services (SSARSs)

Question 1

SSARSs are issued by and apply to

Answer 1

Issued by the AICPA’s Accounting and Review Services Committee (ARSC). They apply to preparations, compilations, and reviews of NONISSUERS’ FINANCIAL STATEMENTS
Unaudited financial information and unaudited financial statements
Historical financial information of nonissuers

Question 2

Characteristics of a preparation engagment

Answer 2

Nonattest service
Indepence is NOT required
Provides NO assurance
NO report

Question 3

Characteristics of a compilation

Answer 3

Assist management in the presentation of financial statements
Determine independence and disclose lack of
NO assurance
Report on financial statements
Report is issued

Question 4

Characteristics of a review

Answer 4

Independence is required
Limited assurance: aware of any material modifications that should be made
Performed through INQUIRY and ANALYTICAL PROCEDURES
CAN’T review pro forma financial info
Report is issued