cpa audit review ch 19 review 4

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Joens1313
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cpa audit review ch 19 review 4
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2014-11-10 02:08:40
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cpa audit review ch 19 review 4
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  1. The standard compilation report on financial statements of a nonissuer may be included in a prescribed form that calls for a departure from GAAP. In these circumstances, the accountant need not  

    State that no opinion or other form of assurance is given.  

    State that management is responsible for the fair presentation of the financial statements.  

    Advise the body that adopted the form of the departures from GAAP required by the form.

    State that the requirements of the prescribing body differ from GAAP.
    Advise the body that adopted the form of the departures from GAAP required by the form.  

    An alternative form of the standard compilation report is necessary when a prescribed form or related instructions require a departure from GAAP. Such a departure results from specifying a measurement principle not in conformity with GAAP or failing to require disclosures in accordance with GAAP. The presumption is that the information in the prescribed form suffices to meet the needs of the body that designed or adopted the form. In the standard report on statements included in such a form, the accountant should indicate that (1) the statements are in a prescribed form, and (2) they may differ from those presented in accordance with GAAP. However, (s)he need not describe the differences (AR 300).
  2. The standard report for the compilation of a nonissuer’s financial statements should state that the financial statements have not been ---------- or ----------. The report also should state that a compilation has been performed in accordance with the SSARSs issued by the AICPA.
    audited,  reviewed
  3. Performing inquiry and analytical procedures is the primary basis for an accountant to issue a

    Review report on prospective financial statements that present an entity’s expected financial position, given one or more hypothetical assumptions.  

    Management advisory report prepared at the request of a client’s audit committee.  

    Report on compliance with requirements governing major federal assistance programs in accordance with the Single Audit Act.

    Review report on comparative financial statements for a nonissuer in its second year of operations.
    Review report on comparative financial statements for a nonissuer in its second year of operations.  

    A review engagement consists primarily of inquiries of management, analytical procedures applied to financial data, and written management representations. Among other things, inquiries should be made about changes in the entity’s business activities or accounting principles and practices. Analytical procedures are performed to identify relationships and items that appear to be unusual. One common analytical procedure is the comparison of the financial statements with statements for prior periods.

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