Practice Issues - Compilation and Review Update
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.

Section I of this course consists of an overview of SSARS No. 21, as amended by SSARS No. 23, Omnibus Statement on Standards for Accounting and Review Services- 2016. The course 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 course also discusses SSARS No. 22, Compilation of Pro Forma Financial Information.

Section II 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, 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.

Course Publication Date: June 22, 2017

This course is available with NO ADDITIONAL FEE if you have an active self study membership or can be purchased for $200.00!

Author:Steven Fustolo
Course No:AUD-PRACISSUE-6067
Recommended CPE:20.00
Delivery Method:QAS Self Study
Level of Knowledge:Overview
Prerequisites:General understanding of compilation and review standards
Advanced Preparation:None
Recommended Field of Study:Auditing
  
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Learning Objectives
  • 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 AR-C 70 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 AR-C 70.
  • 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 some procedures that must be performed in a compilation engagement under AR-C 80 of SSARS No. 21.
  • Recognize some of the documentation requirements in a compilation engagement.
  • 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 be documented in a review engagement.
  • Recognize the effective dates of SSARS No. 21 including early implementation options.
  • 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 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.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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