review

Sample compilation and review reports under SSARS 19 for NPOs

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(cross-post from my other blog, Nonprofit Update.)

Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:

Here is a list of the sample reports under SSARS available on my blogs.

Sample compilation and review reports under SSARS 19 for NPOs Read More »

Filling up a bucket – word picture for levels of assurance in audit, review, and compilation

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In a webcast on August 31, 2011, Mr. Michael Glynn, CPA, of the AICPA staff, gave a wonderful word picture of the levels of assurance in a review and audit.  Here’s his idea:  Filling up a bucket with procedures produces different levels of assurance.  I would like to expand Mr. Glynn’s description and provide an illustration.

  • In an audit, the accountant provides obtain reasonable assurance that there are no material errors in the financial statements.
  • In a review, the accountant provides obtain limited assurance that there are no material errors in the financial statements.
  • In a compilation,the accountant does not provide obtain any assurance that there are no material errors in the financial statements.

Notice the similarity and difference?  The overlap between these definitions is how much assurance the accountant provides obtains that there are no material errors in the financial statements.

The differences? …

Filling up a bucket – word picture for levels of assurance in audit, review, and compilationRead More »

Filling up a bucket – word picture for levels of assurance in audit, review, and compilation Read More »

Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19

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How can management be response for financial statements and internal control for preparation of the financials when the accountant prepares them?  That is what the second paragraph in the compilation and review report say.  See thumbnail picture of the reports here.  See sample reports here and here.

In a webcast on August 31, 2011, Mr. Michael Glynn, CPA, from the AICPA, gave a fantastic word picture for how management can be responsible for the report and internal control.

…

Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19Read More »

Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19 Read More »

One sentence explanation of the difference between audits and reviews

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(cross posted from www.ulvog.wordpress.com)

I have discussed the differences between audits, reviews, and compilations here and here. Even developed a visual illustration here.  Ask any CPA and you can get a long explanation of the distinctions.

For something shorter, consult this article by Angus Loten in the Wall Street Journal, which said:

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One sentence explanation of the difference between audits and reviewsRead More »

One sentence explanation of the difference between audits and reviews Read More »

Visual description of the difference between audits, reviews, and compilations

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Here is a visual picture that illustrates the different comfort levels someone can draw from financial statements that have been audited, reviewed, or compiled by a CPA. 

Here is a picture of assurance levels from reports issues by CPAs.

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Visual description of the difference between audits, reviews, and compilationsRead More »

Visual description of the difference between audits, reviews, and compilations Read More »

What comfort level is there from an audit, review or compilation report?

1 Comment / Audits, Compilations & reviews /

This is an explanation of the visual picture I drew in the previous post.  I will try to explain the differences between audits, reviews, and compilations with a minimal amount of the technical words we CPAs usually bring to an issue.  …

What comfort level is there from an audit, review or compilation report?Read More »

What comfort level is there from an audit, review or compilation report? Read More »