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In a report what is explicit and what is implicit

E - Accting principles according to GAAP -
E - express and Opinion
I- No new acting principles
I - No new acting procedures


What is Tippicanoe - 10 standards of a PCAOB

T - Training education CPA - adequate training and proficiency
I - Independence
P - Due Professional Care - Professional skepticism, doing a really good job, using correct skills, acting with comp[etence
P - Plan and supervise the audit
I- I/C - must get stuff app. audit evidence to assess RMM and understand I/C
C- must get S, A, Audit evidence - by performing audit procedures to come to an opinion
A - Are acting principle in accordance with GAAP
N - Are there no new accounting principles applied - consistency
O - No omitted disclosures = I
E - Express an Opinion


What is Due Professional Care

This must be exercised in the performance of the audit and in the prep of the report
Critical review - of judgement used at every level
- Due Diligence - operating without negligence
-Professional Skepticism - maintaining a critical eye and objective attitude


What is a good comparison when making an evaluation an entity's costs and expenses

Compare current year payroll expense with prior year's payroll expense


When you are doing a review and you become aware of a material departure from GAAP - how should you modify the standard report

Review provide Limited assurance and therefore the accountant is not aware of any "Material Modifications required" for them to be in conformity with GAAP. So when there is a departure - add a separate paragraph to the report.


What is an example of TOC for completeness in the revenue cycle

An invoice is prepared for each shipping document





Prep of F/S

What kind of assurance do you give in each of these

These go up in responsibility

Audit - attest express positive assurance

Review - attest - Give limited or negative assurance - no opinion - but I am not aware of any material modifications that need to be made in order for them to be in compliance with GAAP

Compilations - non attest, no opinion, no assurance

Prep of F/S - no opinion, no assurance


What engagements are governed by SSARS

Prep of F/S


Prep of F/S

Non attest, no assurance
- Must get an engagement letter signed by both client and auditor

- has: "expected non GAAP or inadequate disclosure" - meaning that you will indicate and explain in a separate paragraph any incidences of non GAAP or inadequate disclosures


What are the general standards that govern - Reviews, Compilations, and F?S Prep? and what do they cover?

AR C -60 - They cover

F/S - Mgmt resp - F/S - either general purpose framework or special purpose framework

Ethics - need to comply with code of professional conduct -

Professional Judgement - use knowledge and experience

Conduct - need to be familiar with the sections of ARC and explanatory material

Quality Control - partner is in charge to make sure this is done -



These are special purpose frameworks
Cash basis, tax basis, regulatory basis, contractual basis


What are the ethical requirements when performing SSARS?

Public Interest
Not for personal Gain
No conflict of interest
Due Care
Scope and Nature


What is in the Engagement letter for a SSARS

Required for F/S Prep, Review, and Compilations.

It includes:
- Objective

- Mgmt responsibility - "SSARS issued by ARSC of the AICPA

- Limitations of the engagement

- Identifiy application framework

If F/S prep - add:
1- indicate and explain expected non-GAAP or Inadequate disclosure
2.- Each Page is signed - "no assurance is provided"


What is you are doing a F/S prep and client refuses to allow you to write "no assurance" on each page

- Can disclaim an opinion
- Can ask to move them up to a compilation
- you have to withdraw


Independence - When must you be

Yes - ERAS
Agrees upon Procedures
Special Report
Compilation - yes and no - if no - then must state

Book Keeping
F/S Prep


SSARS - when do you give a report

Audit - yes
Review - Yes
Compilation - Yes
F/S Prep - No


What are the documents for F/S prep

Engagement Letter and F/S - that's it


Compilation - independence

Attest with no assurance, don't need to be independent, but its add a paragraph that says that you are


Compilation Engagement letter - what is the difference

Add a paragraph stating the expected form and content of the compilation report


What does the compilation report look like? ARC 80

1 - Paragraph
Mention: mgmt responsibility for F/S,

The statements that we are compiling; B/S, I/S , Statement of stock holders equity, Cash flows, and footnotes in accordance with GAAP, or OCBOA

Done in accordance with SSARS by ARSC of AICPA

- We did not audit or review so no opinion, no assurance
(you don't do any procedures)

city, state
Date - when you finished your work