Description:
The objective of this course is to inform the reader of the various changes made to the compilation and review standards by the AICPA's Accounting and Review Services Committee (ARSC), and to address practice issues related to compilation and review engagements.

The first section of this course consists of an overview of SSARS No. 21, as amended by SSARS No. 22 through 25, and addresses the three types of engagements that can be performed under the SSARSs: a preparation of financial statements engagement, a compilation engagement, and a review engagement.

The remainder of the course consists of practice issues in compilation and review engagements. Topics include a discussion of an accountant's responsibility for fraud, internal control and going concern, representation letters for review engagements, personal financial statements, tax-basis financial statements, legends on financial statements, accountant's liability in compilation and review engagements, saving time in engagements, ethics and independence issues, and more. The focus of the course is to identify, recognize and recall the rules pertaining to various pronouncements, including those related to recent developments.

Delivery Method: Online Interactive Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Author: Steven C. Fustolo

Category: Accounting and Auditing

Field of Study: Auditing

Passing Score: 70%

Publication Date: 05/03/2022

Technical Details: Auditing: Technical

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Objectives:
1. Identify some of the changes in SSARS No. 21, as amended, that are and are not carried over from auditing standards
2. Identify engagement types that are and are not authorized under SSARS No. 21
3. Recall whether the preparation of financial statements standard is an attest or nonattest service
4. Recognize the term that is assigned to engagements performed on the cash, tax and regulatory bases of accounting
5. Recognize a criterion for an accountant to perform a preparation engagement
6. Recall whether a preparation engagement under AR-C 70 is subject to peer review
7. Identify whether a report is required in a preparation of financial statements engagement under AR-C 70
8. Recognize what the reporting requirements are, if any, when a "no assurance" legend is omitted from prepared financial statements under the AR-C 70 standards
9. Recognize an acceptable location in which to place the description of a special purpose framework in a preparation of financial statements engagement
10. Identify where to disclose GAAP departures in a preparation of financial statements engagement
11. Recognize whether an accountant and a client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70
12. Recall the objective of a compilation engagement under AR-C 80 of SSARS No. 21
13. Identify some procedures that must be performed in a compilation engagement under AR-C 80 of SSARS No. 21
14. Recognize some of the changes made to the compilation report under SSARS No. 21 including those related to special purpose frameworks and GAAP departures, among others
15. Recall how an accountant should report when there is a lack of independence in a compilation engagement
16. Identify who should sign a representation letter in a review engagement
17. Recognize a procedure that should be done when performing analytical procedures in a review engagement
18. Identify one of the requirements in SSARS No. 24 when reporting on an international financial reporting framework

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NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: No IRS credit for Enrolled Agents.

Profession Identifiers : CPA