Preparation, Compilation, & Review
CPAs can provide any of the following services as provided for in the SSARS:
Preparation Engagement
AR-C 70 provides guidance for preparation of financial statement engagements. This standard allows CPAs to issue financial statements without a compilation report. A disclaimer (no assurance is provided) is required. Disclosures to the financial statements are not required. The CPA need not be independent.
Compilation Engagement
AR-C 80 provides guidance for compilation engagements. The CPA usually assists with the preparation of financial statements and then reads them to see if they appear appropriate. Disclosures to the financial statements are not required. A compilation report is required. The CPA need not be independent.
Review Engagement
AR-C 90 provides guidance for review engagements. The CPA usually assists with the preparation of financial statements and then makes inquiries and creates analytics. These procedures provide the basis for a limited assurance report. A review report is required. The financial statements are full-disclosure. The CPA must be independent.
Here are my SSARS articles to assist you in your work.
Preparation Articles
AR-C 70How SSARS 27 Makes Things Better for CPAs
How to Address Supplementary Information in Compilation and Preparation Engagements
New SSARS Book – Second Edition
AR-C 70: The Definitive Guide to Preparations
Issue Financial Statements in the Most Efficient Way
An Introduction to Special Purpose Reporting Frameworks
Selected Disclosures in SSARS Engagements
Required Financial Statement References
Preparing Financial Statements: Which Standards Apply?
SSARS 23 Preparations and Compilations
Compilation Articles
AR-C 80How to Address Supplementary Information in Compilation and Preparation Engagements
AR-C 80: Definitive Guide to Compilations
New SSARS Book – Second Edition
10 Steps to Better Audit Workpapers
Lacking Independence in a Compilation
An Introduction to Special Purpose Reporting Frameworks
Selected Disclosures in SSARS Engagements
Required Financial Statement References
Independence in Attest Engagements
Going Concern in Compilation and Review Engagements
Review Articles
AR-C 90AR-C 90: Definitive Guide to Review Engagements
10 Steps to Better Audit Workpapers
SSARS 25: Materiality and Adverse Conclusions
An Introduction to Special Purpose Reporting Frameworks
Required Financial Statement References
Independence in Attest Engagements
Going Concern in Compilation and Review Engagements
Preparing Financial Statements: Which Standards Apply?
Bookkeeping, Preparations, Compilations, and Reviews
Preparation of Financial Statements and Compilation Engagements
If you provide financial statements through preparation or compilation standards, this book should be your desktop reference. The clarity and simplicity provided ensure you comply with both the letter and intent of the standards. There are many examples and templates to help apply the standards in an efficient and comprehensive way.
Charles is a master at breaking down the details, illustrating, and contrasting preparation and compilation engagements, and pointing out potential pitfalls to be aware of.
Much more user-friendly and applicable to the small firm practitioner than the big-ticket reference manuals.
Don Vieira, CPA
Centinel Pacific Accounting, LLC
Wasilla, Alaska