Compilation Engagements Flashcards Preview

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Flashcards in Compilation Engagements Deck (10)
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what are Limitations of compilation engagement

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


what are Auditor's Responsibilities

Must do the compilation based on ssars via aicpa


Accepting the engagement with no knowledge

Must acquire knowledge prior to issuing the report


Before issuing the report...

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


Information provided by client

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


When to withdraw from engagement?

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


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


Additional Requirements

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


F/S prepared other than Framework (special Purpose)

Must indicate that it was prepared in special purpose framework


Report omits all disclosures

> written down that disclosures were omitted