Reviews and compilations
Area 4: Forming Conclusions and Reporting (10-20%)
Your Progress
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Topics
- SSARS review engagements
- Compilation engagements
- Preparation of financial statements
Study Frameworks
Engagement Types Comparison
| Feature | Audit | Review | Compilation | Agreed-Upon Procedures |
|---|---|---|---|---|
| Level of assurance | Reasonable | Limited | None | None (findings only) |
| Key procedures | Inspect, confirm, observe, recalculate | Inquiry, analytical procedures | Read for obvious errors | Specified by engaging parties |
| Report opinion | Positive — FS are fairly stated | Negative — nothing came to our attention | No assurance expressed | Report findings only |
| Independence required | Yes | Yes | No (but must disclose lack) | Yes |
SSARS Engagement Levels
| Engagement | Assurance | Report Issued | Independence Required | Key Requirement |
|---|---|---|---|---|
| Preparation | None | No (legend on each page) | No | Engagement letter + no-assurance legend |
| Compilation | None | Yes | No (disclose lack) | Read for obvious errors |
| Review | Limited | Yes | Yes | Inquiry + analytical procedures + rep letter |