AU 21 - Compilation and Review Engagements Flashcards
Where are compilation engagements in the handbook?
CSRS 4200 - Related Services
Opinion for compilation?
No, not an assurance engagement
What is a compilation engagement?
Assisting in preparing compiled financial info in accordance with a basis of accounting selected by management. Not general-purpose framework - should use review or audit in that case.
Procedures for compilation?
No
Compilation - two planning steps
- make inquires of management as to intended use of compiled financial info and if it is to be used by third party
- obtain acknowledgment from management of the basis of accounting exptect to be applied
Compilaton - specific terms
Must be identified with management
When can the compilation be continued in the event of a third party getting the compiled info?
- if they are in a position to request and obtain further info from the entity OR
- they have agreed with management the basis of accounting to be applied.
IF neither, practitioner cannot continue unless basis of accounting is ASPE or IFRS
3 things practitioner must gain knowledge of
- entity’s business and ops
- entity’s accounting system and records
- basic of accounting to be applied and policies used
Documentation needed
In CSRS 4200.39 - enagement letter, description of entity’s business, rec of accounting records to compliation etc
Primary evidence gained in review
Inquiry, discussion and analytical procedures
Acceptance and engagement letter needed for review
? YES
Materiality for review?
YES
4 steps in a review performance
- perform, supervise and review work performed
- evaluate adequacy and sufficiency of evidence
- design additional procedures where statements may be materially misstated
- document results of work performed and conclusions reached
Type of assurance
Negative - nothing has come to our attention
