Performing Preparation, Compilation, Review and Engagements (A1S4)

Overview

CPA firms generally perform a significant number of preparation, compilation and review engagements under the Statements of Standards for Accounting and Review Services (SSARS). Compilations and reviews are performed as attest engagements where preparation engagements do not require independence and as such are considered non-attest engagements. Reviews, like audits are considered assurance services. Reviews provide limited assurance that financial statements are free of material misstatement. In addition, the CPA may perform other non-attest services, such as bookkeeping. CPAs must fully understand the professional responsibilities related to each of these varying levels of services, in order to effectively and efficiently satisfy engagement objectives and ensure compliance with professional standards relative to independence. (Please Note: This module is part of Surgent's Audit Skills Training: Level 1.)

Major Topics:

• Compare and contrast the basis and requirements of preparation, compilation, and review engagements
• Identifying key reporting elements of compilation and review reports
• Impact of special purpose accounting frameworks and other special issues

Learning Objectives:

• Explain the basis and requirements for a compilation contrasted with preparing financial statements
• Describe the basis and requirements for a review
• Discuss special purpose framework and other issues