Compilation Engagements Flashcards Preview

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Flashcards in Compilation Engagements Deck (10)
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1

what are Limitations of compilation engagement

Relied upon to disclose errors, fraud, or noncompliance with laws and regulations

2

what are Auditor's Responsibilities

Must do the compilation based on ssars via aicpa

3

Accepting the engagement with no knowledge

Must acquire knowledge prior to issuing the report

4

Before issuing the report...

Read the F/S and consider if its free from obvious material errors

5

Information provided by client

Not required to but can make inquiries or perform analytical procedures to verify info

6

When to withdraw from engagement?

> Management didnt provide records or documents
> management doesnt make necessary adjustments because of departures from gaap

7

Accountant report in compilation report includes:

> statement that management is responsible for F/S
> Date the F/S covered
> Include a statement that compilation was done according to SSARS of the AICPA
> Accountant did not audit or review f/s or perform procedures
> No opinion expressed
> Include the date

8

Additional Requirements

> each page states: "See accountant's compilation report"
> Not required to be printed on letterhead or manually signed

9

F/S prepared other than Framework (special Purpose)

Must indicate that it was prepared in special purpose framework

10

Report omits all disclosures

> written down that disclosures were omitted