Engagement Essentials

Chapter 6OTHER COMPILATION ENGAGEMENTS

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

•    Identify the performance requirements for compilation engagements of specified elements, accounts, or items of the financial statements.

•    Recall the performance requirements for compilation engagements of pro forma financial information.

•    Identify the performance and reporting requirements for compilation engagements of prospective financial information.

•    Recognize the reporting requirements and modifications for interim financial statements.

RESOURCE

Appendix B—Sample Compilation Reports

Compiling Accounts, Elements, or Items of Financial Statements

Over the last several years, the Accounting and Review Services Committee (ARSC), which is responsible for issuing Statements on Standards for Accounting and Review Services (SSARSs), has undertaken the SSARSs clarity project, the purpose of which has been to redraft SSARSs using the same conventions for professional literature used in auditing standards. As part of the clarity project, the ARSC issued its first three redrafted standards in 2014. These standards included the new standards for engagements to prepare financial statements, as well as updated standards for compilation and review engagements.

The updated standards for compilation engagements do not include illustrations for reporting on compilation engagements that involve accounts, elements, or items of financial statements. ...