Compilation & Review: Recent Developments (20 hrs)

Course No. F030
Format: Online pdf (521 pages).
Prerequisites: General understanding of compilation and review standards
Advance Preparation: None
Level: Overview
CPE Credit: 20 hrs.
Field of Study: Auditing: Technical
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: April 2022

Upon completion of this course, you should be able to:

Section 1 Overview of SSARS No. 21-24:  The Compilation and Review Standards 

• Identify some of the changes in SSARS No. 21, as amended by SSARS No. 23, that are and are not carried over from auditing standards
• Recognize engagement types that are and are not part of SSARS No. 21
• Recall whether the preparation of financial statements standard is an attest or nonattest service
• Recall what must happen for an accountant to perform a preparation of financial statements engagement
• Recall whether a preparation engagement under AR-C 70 is subject to peer review
• Identify whether a report is required in a preparation of financial statements engagement under AR-C 70
• 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
• Identify where to disclose GAAP departures in a preparation of financial statements engagement
• Recognize whether an accountant and his or her client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70
• Recall the objective of a compilation engagement under AR-C 80 of SSARS No. 21
• Identify how an accountant should report on a disclaimer of supplementary information in a compilation engagement
• Identify requirements to be satisfied to perform a review engagement under AR-C 90
• Identify evidence an accountant should obtain to demonstrate that financial statements reconcile with accounting records
• Recognize an appropriate title that can be used for a review report under SSARS No. 21
• Identify the order in which certain report paragraphs should be placed in the SSARS No. 21 review report
• Recall some of the items that should and should not be documented in a review engagement

Sections 2 & 3 Practice Issues

• Identify the reporting options for controllers who seek to issue financial statements
• Recognize the accountant’s responsibility for reporting fraud in compilation and review engagements
• Identify the period of time that defines “reasonable period of time” in going concern
• Identify factors that may or may not suggest there is a potential going-concern problem in a compilation or review engagement
• Recognize the threshold to evaluate an Altman Z Score
• Identify an example of a deferred M-1 that is eliminated by tax-basis financial statements
• Recognize some of the general rules for tax-basis financial statements
• Identify the options available to report on supplementary information in a compilation or review engagement
• Recognize the general disclosure rules when issuing a compilation report on a specified element
• Identify when a management representation letter is required and some general rules pertaining to such letters
• Identify a prescribed form and the options for reporting on personal financial statements
• Recognize some of the recurring deficiencies noted in peer reviews
• Identify examples of simpler reporting options to full GAAP financial statements
• Identify provisions to incorporate into engagement letters to protect the accountant against liability claims
• Recognize the general rules to maintain independence when an accountant performs non-attest services for an attest client
• Identify when independence is impaired in certain situations in which an accountant performs non-attest services for an attest client
• Recognize the privity standard as it relates to the accountant’s liability to third parties