Compilation and Review Engagements

Accountant should do the following regarding subsequent discovery of facts existing at the date of the accountant's compilation or review report?

-in compilation engagement, obtain additional or revised information -in a review engagement, perform the additional procedures to achieve limited assurance

Compilation Report "CAR MARS O"

C - Intro state that accountant compiled specified stms A - Accountant has not audited (intro) R - Accountant has not reviewed, & doesn't express opinion or any assurance ........... "whether FS are accordance with accounting principles generally accepted in USA"(intro) M Management Responsibility paragraph ("preparation and fair presentation of FS with GAAP, for DIM") A Accountant Responsibility Paragraph ("conduct a compilation RS - in accordance with SSARS issued by AICPA O - Objective is to assist management in presenting financial information in form of fin'l stmt M

following would be performed during a review engagement:

Comparison of current-year to prior-year account balances

Supplementary Information:

Information presented outside the basic financial statements, excluding required supplementary information, that is not considered necessary for the financial statements to be fairly presented in accordance with the applicable financial reporting framework. Such information may be presented in a document containing the audited financial statements or separate from the financial statements. -may refer to the other data in the report on the basic financial statements -issue a separate report on the other data or in other matter paragraph

Review engagement procedures

generally are limited to inquiries and analytics.

An accountant's report that is restricted should contain a seperate paragraph at the end of the report that includes the following elements:

- a statement indicating that the report is intended solely for the infomation and use of the specified parties -an identification of the specified parties to who use is restricted. the report may list the specified parties or refer the reader to the specified parties listed elsewhere in the report -a statement that the report is not intended to be and should not be used by anyone other thatn the specified parties

Compilation Report should:

-Idnetify the prospective Fs -state compilation was performed in accordance with attestation standards established by AICPA -state compilation limited in scope and CPA does not issue an opinion or any assurance on FS -there will usually be difference between forecasted and actual results -CPA has no responsibility to update the report for future events and circumstances -be dated and signed by practitioners firm manually or electronically as of the date of completion of the procedures required by AE-C

Review Report

-Title "includes independent" -Addresse -Intro:" We reviewed.. as of", " A Review includes primarily analytical procdures and making inquiries" :A review is LESS in scope than an audit -MR DIM -Accountant Responsibility "conduct review in accordance SSARS issued BY AICPA, obtain limited assurance that there are no material modifications that should be made to FS" -Results of engagement "Based on our review not aware of any material modifications" -Signature -the date of the completion of accountant review procedures EAch page of report should include Reference "See Indepnedent Accountant's Review Report"

If client refuses to disclose the newly discovered facts and their impact on fS to persons known to be currently using or likely to use FS, the following steps should be taken:

-notify client that accountant report must no longer be associated with FS -notify regulatory agencies report should no accountant's longer be used -notify each person known to be using FS that FS and accountant's report should no longer be used

A practioner should not perform the following engagement of an entitys compliance with requirements of specified laws, regulations, rule, contracts, or grants:

-should not perform a review of an entity's compliance with requirments of specified laws, regulations, rules, contracts, or grants

To compile financial statements, the accountant should possess a general understanding of the nature ot the entity's operations, which would include

-stated qualifications of the entity's accounting personnel

A review Report may not be issued when

-unable to peform inquiry and analytical procedures/scope restrictions -client does not provide the accountant with a representation letter -the accountant is not independent

emphasis of matter paragraph

A paragraph added to an auditors' report that provides information fundamental to users' understanding of the financial statements (such as, entity is component of larger business enterprise, significant related parties, subsequent events, accounting matters, uncertainties). -used for reviews and audits

A practitioner should not accept an engagement if reporting on an entity's compliance/

A practioner should not accept an engagement to perform a review of an entity's compliance with specified requirements or about the effectiveness of an entity's internal control over compliance

If the accountant decides to modify the standard review report because mgmt will not revise the FS due to material departure from applicable financial reporting framework, the accountant should:

disclose the departure from the applicable fina