Preparation, compilation and review engagements

AUD Chapter 29 · Area IV · Blueprint IV.C

Most small businesses never have an audit. They get a preparation, a compilation or a review under SSARS, the standards for accounting and review services. The Blueprint asks for the factors to consider in each and the form and content of the compilation and review reports. Expect questions that describe a report and ask which service it is.

In this chapter

Three services, one ladder
Preparation engagements
Compilation engagements
The compilation report
Review engagements: the work
The review report
Modified review conclusions and other paragraphs

This chapter has 7 lessons, 50 practice MCQs with explanations and 16 simulations, plus flashcards and a recall sheet.

What this chapter covers

SSARS preparation without a report
the compilation report
the review report and limited assurance

Chapter 28: Attestation reports · Chapter 30: Reporting on compliance