Wiley Practitioner's Guide to GAAS 2015: Covering all SASs, SSAEs, SSARSs, PCAOB Auditing Standards, and Interpretations

AR 110 Compilation of Specified Elements, Accounts, or Items of a Financial Statement

ORIGINAL PRONOUNCEMENT

Original Pronouncement

Statements on Standards for Accounting and Review Services (SSARSs) 13, 17

APPLICABILITY

AR 110 applies when an accountant is engaged to compile or issue a compilation report on one or more specified elements, accounts, or items of a financial statement. (For a specified element, account, or item of a financial statement included as supplementary information, refer to AR 80.53.)

OBJECTIVES OF AR SECTION 110

This section established standards for performing a compilation of specified elements, accounts, or items of a financial statement, examples of which include schedules of rentals, royalties, profit participation, or provision for income taxes.

A compilation of specified elements, accounts, or items of a financial statement is limited to assisting management in presenting financial information that is the representation of management without undertaking to express any assurance on that information.

FUNDAMENTAL REQUIREMENTS

General Guidance

Reporting Obligation

An accountant may prepare or assist in the preparation of specified elements, accounts, or items of a financial statement and submitting such a preparation to management without the issuance of a compilation report, unless the accountant has been engaged to perform a compilation. However, in deciding whether to issue a compilation report, the accountant should consider how ...