The purpose of this course is to inform the reader of the various changes made to the compilation and review codification by the issuance of SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions, include changes made to AR-C 60- General Principles, AR-C 70- Preparation of Financial Statements, AR-C 80- Compilation Engagements, and AR-C 90- Review of Financial Statements. Topics include expanding use of the disclaimer report in a preparation engagement, changes involving the reporting on the contractual basis of accounting, new requirements to define materiality in a review engagement, expanded inquiries and management representations in a review engagement, the new modified conclusion (qualified and adverse conclusion) reporting changes, guidance on going concern in a review engagement, and more.
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.
Course Publication Date:
March 19, 2024
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$40.00!
| Author: | Steven Fustolo |
| Course No: | AUD-SSARS25-6164 |
| Recommended CPE: | 4.00 |
| 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 engagement types that are (and are not) authorized under the SSARSs.
- Recognize a precondition for an accountant to accept a SSARS engagement.
- Identify what is required for an accountant to perform a preparation engagement.
- Recall whether the preparation of financial statements standard is an attest or nonattest service.
- Recognize whether an accountant and a client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70.
- Identify whether a report is required in a preparation of financial statements engagement.
- 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 actions an accountant should take under SSARS No. 25 when a compilation is performed on the contractual basis of accounting.
- Identify factors that should consider in determining materiality in a review engagement.
- Identify the date as of which management representations should be made in a management representation letter for a review engagement.
- Recognize a change that SSARS No. 25 makes to the accountant’s review report.
- Recall language that SSARS No. 25 requires to be included in a review report on the contractual basis of accounting.
- Identify the term that GAAP uses for management’s assessment of an entity’s going concern.
- Recognize the reporting requirements for going concern in a review engagement.
- Recall some of the items that should be documented in a review engagement.