review

Newly approved SSARS will allow a new service, ‘preparation’. Will also require written & signed engagement letters.

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Update – See also:

In August, the Accounting and Review Services Committee approved the clarified SSARS. This rewrites the SSARS into the same clarified format we saw with the audit literature.

The biggest change is the introduction of a new service, called preparation, which will allow a CPA to issue financial statements without providing an accountant’s report or performing procedures on the information.

In highly condensed terms, …

Newly approved SSARS will allow a new service, ‘preparation’. Will also require written & signed engagement letters.Read More »

CCH running sale on Compilation and Review CPE courses

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CCH sent out the following announcement:

 

 

Full disclosure: I am the author of seven of those courses. I was compensated to write the courses but don’t receive any additional comp after the courses were finished. Also, don’t get anything for telling you about the courses.

There’s another course I wrote for CCH that isn’t listed above:

Obviously, I think the courses would be big help for you and your staff. And there’s that 15% discount through the end of March.

Newest book on differences between audits, reviews, and compilations now available in print and for Nook

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Print copy and Nook e-book are in addition to availability for the Kindle and another half-dozen formats.

audit review compilation cover for wordpress croped

The book is an intentionally short read at about 30 pages. The print copy has 20 pages of text.  Focus is to quickly describe the differences between those levels of services using three illustrations:

  • A football game – How does advancing to the 10-yard line compare to an audit?
  • What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to different levels illustrates the differences between the levels of service.

It also explains the differences in plain language. Well, at least using less accountantese than you would usually get from an accountant.

This is a compilation of posts previously appearing on my blogs, with slight editing.

Where can you find the book?

Print book at Amazon here.

Nook e-book at Barnes and Noble here.

Kindle e-book at Amazon here.

Also available here in other formats:

  • ePub format for your iDevices
  • PDF
  • text
  • Mobi for your Kindle device

Compilation and Review Update

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Here’s a list of recent posts describing what’s going on in the comp and review world: proposed changes to compilation rules & report; a new “preparing” service, and highlights of 13/14 Comp and Review Alert.

Proposed changes to compilation rules:

“Preparation” of financials”

Comp and Review alert highlights:

 

Dating representation letters in a review

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Charles Hall has a great post at CPA-Scribo: Dating Review Representation Letters.

A few topics covered:

  • He gives a good idea on how to handle situation when client isn’t availble to sign the letter until after the date the review is complete.
  • Do you need to have the signed rep letter in your hands on the day you say the review is complete?

If you haven’t started using Evernote to keep a personal library of reference tools, this article would give you a great reason to learn.

Would be worth your time to check out the article. Also worthwhile to check out Evernote so you can keep a copy of the article handy.

“Audit. Review. Compilation. What’s the difference?” – New book now available.

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Audit. Review. Compilation. What’s the difference? – Illustrations using a football game, buying a used car, and filling a bucket.

audit-cover

What’s the difference between getting an audit, review, or compilation from your CPA firm? This short, 29 page book will help you understand.

Three illustrations help explain the differences:

  • A football game – How does advancing to the 10-yard line compare to an audit? What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to three different levels illustrates the differences between three levels of service.

This is a compilation of articles at my blog, Nonprofit Update.

The book is now available at Amazon.

Now available here in other formats:

  • ePub format for your iDevices
  • PDF or text
  • Mobi for your Kindle device

Soon to be available at Barnes and Noble.

Frequent issues on Reviews during peer reviews – from the 13/14 Comp and Review Alert

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The Compilation and Review Developments – 2013/14 Alert provides some good comments on issues in reviews that pop up frequently during peer reviews.

A wise CPA would read through this list and mentally check to see if any of those issues are present in his or her engagements. Even wiser step would be to pull out a couple sets of workpapers to see how you compare. (We call that monitoring – write a quick memo that you checked a few files – your peer reviewer will be happy.)

Here’s a few of the common issues.

Document expectations in analytical procedures

…

Frequent issues on Reviews during peer reviews – from the 13/14 Comp and Review AlertRead More »

4 SSARS exposure drafts

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A new service provided by CPAs which won’t require an accountant’s report. It is called ‘preparation’ of financial statements.

Big revision to compilation standards.

Revision of the SSARS into clarity format.

I’ve not mentioned these four exposure drafts, since I’m only diving into the details now.  You can find the exposure drafts on this page.

The specific links are:

These will be a big deal. I think you will really like them.

Football as illustration of differences between audits, reviews, and compilations

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Since football season is in full swing, let’s go to the nearest stadium to compare an audit to a review, to a compilation, and to the newest level of service, a preparation report.

(Cross-post from my other blog, Nonprofit Update.)

Audit

If you were performing an audit, you would be on the field and receive the kickoff at your 20-yard line. A series of passes and runs would slowly move the ball. With effort you would advance to your opponent’s 10-yard line. Good touchdown position.

Advancing the football would be the same as gathering evidence to provide you a reasonable level of assurance so you could issue an audit opinion on the financial statements.

…

Football as illustration of differences between audits, reviews, and compilationsRead More »

Compilation and Review CPE courses by James Ulvog

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Looking for on-line CPE courses on compilations and reviews? I’ve written or revised a series of courses for CCH which you can find linked below. I’ve quoted liberally from the CCH site. Here is a list of courses with descriptions to follow:

Course summaries:

…

Compilation and Review CPE courses by James UlvogRead More »

Highlights from compilation and review risk alert – Clarity project

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This is the first of several posts talking about new issues in the compilation and review world.

Last week I read the 2012/13 comp and review risk alert, available here from the AICPA.

Yes, yes, I know I should have read this about 45 days ago. Just a wild guess, but I’ll guess I’m not the only one that has not gotten around to looking at this before now.

I’ll mention a few highlights. If you provide compilation or review services to your clients, it would be wise to read the alert yourself.

…

Highlights from compilation and review risk alert – Clarity projectRead More »

Evaluating a used car as an illustration of the differences between compilation, review, and audit

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I have a post at my other blog, Nonprofit Update which provides an analogy to illustrate the differences between the levels of attestation services provided by CPAs:

Evaluating a used car as an illustration of the differences between compilation, review, and audit

The analogy compares three different ways to figure out the quality of a car. I suggest each of those ways is similar to a level of service. Here’s the conclusion:

  • Look at the car from across the street – very low cost for low quality information – compilation
  • Look around inside in the car and drive it around the block – moderate cost for better information – review
  • Have a mechanic work it over – highest cost in terms of time and money but the best information on the quality of the car – audit

Check out the full post for more details on the analogy.