1 Review of Financial Statements .01-.241
Introduction .01-.03
Applicability .04
Consideration of Materiality in a Review Engagement .05-.11
Requirements .12-.236
General Principles for Performing and Reporting on Review Engagements .12
Professional Skepticism in a Review Engagement .13-.16
Engagement Level Quality Control in a Review Engagement .17-.21
Independence .22-.24
Preconditions for Accepting a Review Engagement .25-.30
Communications with Predecessor Accountants .31-.34
Agreement on Engagement Terms .35-.38
Understanding of the Industry .39
Knowledge of the Entity .40-.68
Designing and Performing Review Procedures .69-.72
Analytical Procedures .73-.113
Illustrative Analytics .114-.119
Inquiries and Other Review Procedures .120-.147
Illustrative Inquiries .148-.149
Reading the Financial Statements .150-.152
Reconciling the Financial Statements to the Underlying Accounting Records .153
Evaluating Evidence Obtained From the Procedures Performed .154-.157
Written Representations .158-.164
Communicating to Management and Others Regarding Fraud or Noncompliance with Laws and Regulations .165-.172
Reporting on the Financial Statements — General .173-.174
Reporting on Financial Statements Prepared in Accordance with a Special Purpose Framework .175-.179
Reporting on Comparative Financial Statements .180-.186
Reporting on Known Departures From the Applicable Financial Reporting Framework .187-.192
Emphasis-of-Matter and Other-Matter Paragraphs in the Accountant’s Review Report .193-.197
Alert That Restricts the Use of the Accountant’s Review Report .198-.201
Reporting on Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country .202-.205
The Accountant’s Consideration of an Entity’s Ability to Continue as a Going Concern .206-.207
Consideration of the Effects on the Accountant’s Review Report .208-.209
Subsequent Events and Subsequently Discovered Facts .210-.216
Initial Review Engagements — Opening Balances .217-.219
Reference to the Work of Other Accountants in an Accountant’s Review Report .220-.222
Supplementary Information That Accompanies Reviewed Financial Statements .223-.225
Required Supplementary Information .226-.228
Change in Engagement From Audit to Review .229-.233
Review Documentation .234-.236
Illustrative Engagement Letters .237
Illustrative Representation Letter .238-.240
Illustrative Accountant’s Review Reports on Financial Statements .241
2 Compilation of Financial Statements .01-.103
Introduction .01-.02
Applicability .03
Requirements .04-.87
General Principles for Performing and Reporting on Compilations of Financial Statements .04
Engagement Level Quality Control in a Compilation Engagement .05-.09
Independence .10-.11
Preconditions for Accepting a Compilation Engagement .12-.17
Agreement on Engagement Terms .18-.21
Knowledge and Understanding of the Entity’s Financial Reporting Framework .22-.26
Reading the Financial Statements .27
Other Compilation Procedures .28-.35
Reporting — General .36-.37
Reporting — Financial Statements Prepared in Accordance with a Special Purpose Framework .38-.41
Reporting — Financial Statements that Omit Substantially All the Disclosures Required by the Applicable Financial Reporting Framework .42-.50
Reporting — Comparative Financial Statements .51-.63
Reporting — When the Accountant is Not Independent .64-.66
Reporting — Known Departures From the Applicable Financial Reporting Framework .67-.72
Reporting — Supplementary Information That Accompanies Financial Statements and the Accountant’s Compilation Report Thereon .73-.75
Reporting — Required Supplementary Information .76-.78
Reporting — Alert That Restricts the Use of the Accountant’s Compilation Report .79-.80
Reporting — Emphasis-of-Matter or Other-Matter Paragraphs .81
Reporting — Financial Statements Prepared in Accordance with a Prescribed Format .82-.87
Compilation of Specified Elements, Accounts, or Items of a Financial Statement .88-.91
Change in Engagement From Audit or Review to a Compilation Engagement .92-.97
Documentation Requirements .98-.100
Illustrative Engagement Letters .101
Illustrative Examples of the Accountant’s Compilation Report on Financial Statements .102
Exhibit — Compilation Reporting Requirements When Independence is Impaired .103
3 Preparation of Financial Statements .01-.50
Introduction .01
Applicability .02-.07
Independence .08-.09
Requirements .10-.49
General Principles for Performing Engagements to Prepare Financial Statements .10
Engagement Level Quality Control in an Engagement to Prepare Financial Statements .11-.15
Preconditions for Accepting an Engagement to Prepare Financial Statements .16-.18
Agreement on Engagement Terms .19-.22
Knowledge and Understanding of the Entity’s Financial Reporting Framework .23-.27
Preparing the Financial Statements .28-.34
Preparation of Financial Statements in Accordance with a Special Purpose Framework .35-.36
Preparation of Financial Statements That Contain a Known Departure or Departures From the Applicable Financial Reporting Framework .37-.38
Preparation of Financial Statements That Omit Substantially All Disclosures Required by the Applicable Financial Reporting Framework .39-.41
Preparation of Financial Statements Included in a Prescribed Form .42-.44
Communication with Management .45-.46
Documentation Requirements .47-.49
Illustrative Engagement Letters .50
4 Compilation of Pro Forma Financial Information .01-.24
Introduction .01
Applicability .02-.03
Requirements .04-.22
General Principles for Compilations of Pro Forma Financial Information .04-.06
Acceptance and Continuance of Client Relationships .07-.09
Agreement on Engagement Terms .10-.13
The Accountant’s Knowledge and Understanding of the Entity’s Financial Reporting Framework .14
Compilation Procedures .15-.16
The Accountant’s Compilation Report on Pro Forma Financial Information .17-.20
Documentation .21-.22
Illustrative Engagement Letter for a Compilation of Pro Forma Financial Information .23
Illustrative Accountant’s Compilation Report on Pro Forma Financial Information .24
5 Preparing or Performing a Compilation or Review of Personal Financial Statements .01-.26
Introduction .01
Accounting Considerations .02-.05
Internal Control with Respect to Personal Financial Statements .06-.08
Agreement on Engagement Terms .09-.11
Fraud and Illegal Acts in an Engagement to Prepare or in a Compilation or Review of Personal Financial Statements .12-.14
Representation Letters .15-.17
Compilation and Review Reports on Personal Financial Statements .18-.20
Departures From the Applicable Financial Reporting Framework .21-.22
Illustrative Engagement Letters .23
Illustrative Representation Letter .24-.25
Illustrations of Accountant’s Compilation and Review Reports on Personal Financial Statements .26
6 Special Considerations — International Reporting Issues .01-.26
Introduction .01-.02
Applicability .03-.04
Requirements .05-.24
Considerations When Accepting the Engagement .05-.09
Compilation or Review of Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country .10-.13
Application of Another Set of Compilation or Review Standards .14-.16
Reporting .17-.24
Illustrative Examples of the Accountant’s Compilation and Review Report on Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country Performed in Accordance with SSARSs and Another Set of Compilation or Review Standards .25
Exhibit — Incremental Procedures Required to be Performed if a Review is to be Conducted in Accordance with SSARSs and International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements .26
Appendix A Overview of Statements on Quality Control Standards
Glossary
Index of Pronouncements and Other Technical Guidance
Subject Index
