||Compilation & Review Guide
|Subject Matter Area:
|Date of Publication:
||2015 by Thomson Reuters/Tax & Accounting All rights reserved.
|Recommended CPE Credits:
| Textbook w/Video Online:
||14 QAS/Registry (based on 50-minute hour)
| Textbook Only & Online:
||12 QAS/Registry (based on 50-minute hour)
||One year from date of receipt to complete program and submit quizzer to obtain credit
|Passing Grade for Quizzer:
||70 percent or higher
This program provides accountants with guidance on preparation, compilation, and review engagements. Although there are fewer authoritative standards for these engagements, they far outnumber the quantity of audits performed each year. The standards and applicable guidance to these engagements is provided in the introductory chapter. The performance of preparation, compilation, and review engagements is discussed and separate chapters on reporting are included.
A Bisk CPEasy alert is other comprehensive bases of accounting" (OCBOA) are also known as "special purpose frameworks." The AICPA's Statements on Auditing Standards use the term "special purpose framework," whereas the Statements on Standards for Accounting and Review Services use the term "other comprehensive bases of accounting" or OCBOA.
Use of Materials
The user should begin by watching the DVD segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.
This program is divided into eleven (11) chapters, a glossary, five (5) appendices, and a topical index.
This program is divided into nine (9) chapters, a glossary, four appendices, and an index.
Chapter 1 introduces the user to the topic of preparation, compilation, and review engagements. A brief history of these engagements and the applicable standards are provided.
Chapter 2 concerns planning these engagements and considerations in accepting clients. Additionally, practitioners receive guidance on administration of these types of engagements.
Chapter 3 covers the details of conducting a preparation engagement and specific aspects that an accountant must perform in conducting an engagement of this type.
Chapter 4 covers the details of conducting a compilation engagement and specific aspects that an accountant must perform in conducting an engagement of this type.
Chapter 5 provides guidance on the standard compilation report as well as alternative reports that may result from certain issues.
Chapter 6 discusses the performance of review engagements. A review consists principally of inquiries and analytical procedures. The type of procedures used will vary depending on the circumstances.
Chapter 7 is similar to Chapter 5 in that it discusses the standard report and reporting differences due to issues arising during the engagement, however, this chapter provides guidance on review reports.
Chapter 8 looks at comprehensive bases of accounting other than generally accepted accounting principles, or GAAP, and the reporting on financial statements prepared under these bases in a compilation/review engagement.
Chapter 9 concerns personal financial statement engagements. The basis on which personal financial statements are reported and the authoritative guidance that exists are discussed.
The Glossary defines frequently used key terms.
The four appendices provide examples of checklists, illustrations, and inquiries supporting reviews and compilations.
Throughout this publication, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this publication includes the following designations:
A Bisk CPEasy alert is intended to warn the practitioner of a particular situation that may require action or other consideration by the client or the practitioner on behalf of the client.
A Bisk CPEasy point presents analysis or commentary that attempts to explain or clarify authoritative guidance.
A Bisk CPEasy tip provides practical advice that may be used to help improve client service or service to the practitioner's organization.
Upon successful completion of this program, the user should be able to:
- Identify the differences between a preparation, a compilation, and a review engagement
- Recognize the applicability of Statements on Standards for Accounting and Review Services (SSARS) to various types of professional services
- Identify the differences in objectives and procedures between compilation and review engagements
- Recognize the guidance regarding a change in the level of service
- Identify the objective and requirements of an engagement to prepare financial statements
- Recognize departures from GAAP and/or omitted disclosures
- Identify the objective and requirements of a compilation of financial statements
- Identify the contents of an engagement letter for a compilation engagement and standard compilation report
- Recognize the professional standards for a review engagement
- Identify the differences between a review and a compilation
- Identify the elements of a review report
- Identify the various reporting possibilities for review engagements
- Identify acceptable bases of accounting other than U.S. GAAP
- Provide a report for a compilation engagement on financial statements prepared on a basis of accounting other than U.S. GAAP
- Provide a report for a review engagement on financial statements pre-pared on a basis of accounting other than U.S. GAAP
- Identify where authoritative guidance on the preparation of personal financial statements may be found
- Recognize how to administer a personal financial statements engagement
J. Russell Madray, CPA, CIA, CMA, CFM, is a Senior Lecturer in the School of Accountancy and Finance at Clemson University, one of the country’s most selective public research universities. He also serves as Scholar-in-Residence at Elliott Davis Decosimo, in Greenville, SC. With 17 offices across seven states, Elliott Davis Decosimo is one of the largest accounting, tax and consulting services firms in the Southeast and ranks among the Top 50 CPA firms in the U.S. With more than 25 years of professional experience, including stints at two Big 4 accounting firms, Russ Madray is a nationally-known accounting and auditing thought leader, writer, and advisor helping CPAs throughout the country understand and implement technical accounting and auditing issues. As an author, Russ is responsible for several of the profession’s best-selling books. He also authors many of the AICPA’s publications and is a frequent contributor to the Journal of Accountancy. In addition, he authors the Bisk monthly Accounting and Auditing Report, the widely-used monthly update of accounting and auditing issues that is distributed nationally to CPAs in public practice and industry. Mr. Madray earned a B.S. in Accounting from Clemson University in 1986 and a Master of Professional Accountancy from Clemson University in 1988. He is a certified public accountant, a certified global management accountant, a certified internal auditor, a certified management accountant, and a certified financial manager. He is a past member of the AICPA’s Accounting and Review Services Committee and has served on several other AICPA and state-level committees and boards. (Author/Speaker)
Kurt G. Oestriecher, CPA, is a partner with Oestriecher & Company of Alexandria, Louisiana. Mr. Oestriecher is partner in charge of accounting and auditing services, and is also involved in litigation support and small business consulting engagements. In addition to his client responsibilities, Mr. Oestriecher has served as a discussion leader for numerous accounting and auditing courses. Mr. Oestriecher was presented the 1998, 2005, and 2010 Outstanding Discussion Leader Award by the LCPA, and has received the AICPA Outstanding Discussion Leader Award in 2006, 2007, 2008, 2009, 2010, and 2011. Mr. Oestriecher is a member of the AICPA and the Louisiana Society of CPAs (president, 2002). He is currently serving a three-year term on the AICPA Council, and has previously served on the AICPA Accounting and Review Services Committee (2000-2004) and the AICPA Joint Trial Board (2005-2011). (Speaker)