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Terms in this set (182)

*****MCQ-06284

SSARS engagement (nonissuers only)

Objective --> to apply accounting and reporting expertise to assist management in the presentation of FS WITHOUT providing any assurance on the FS
**Main difference between this and a preparation engagement is that there is a compilation report (gives the engagement slightly more credibility) (SSARS REQUIRES the report regardless of who is expected to use it)

No assurance = Independence NOT required (but must disclose if you aren't)

Read over FS to make sure they are free from obvious material errors
If the auditor becomes aware of any noncompliance with laws, regs, going concern, and subsequent events --> request management to consider the effect on the FS, evaluate management's conclusions, and consider the effect of the matter on compilation report

If FS are inaccurate or incomplete --> do NOT issue an adverse opinion (common exam trick with compilations ***), instead if the client refuses to update info, withdraw

Documents in Compilation Engagement:
1) Engagement letter
2) A copy of the FS (each page should reference the compilation report)
3) A copy of the accountants compilation report

Date of the Report = date of completion of compilation MCQ-06370

Reporting on FS that omit substantially all disclosures --> OK, but disclose MCQ-04427 as long as not meant to deceive

**MCQ-09958 --> what if you are compiling comparative FS and 1 year omits substantially all disclosures and the other year does not? --> Answer: NOT issue a report on comparative FS --> it would be inappropriate (because it would not be comparable) to report on comparative FS when 1 year omits substantially all disclosures and the other does not