Compilations & reviews

Quality control system documentation must be written

Leave a Comment / Audits, Compilations & reviews /

One of the changes made by SQCS 7 is that the documentation of the quality control system must be in writing.

Previously the extensive documentation depended on the nature of the firm. In a smaller firm with relatively simple procedures it did not necessarily have to be in writing.  That has changed. You must have something written down.

How to proceed? Three ideas.

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Quality control system documentation must be writtenRead More »

Quality control system documentation must be written Read More »

One sentence explanation of the difference between audits and reviews

Leave a Comment / Audits, Compilations & reviews /

(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 »

Do you plan to disclose the reasons for lack of independence in a compilation?

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A previous post discussed the new option in SSARS 19 to provide the reasons for the accountant’s lack of independence in a compilation.  Here is a poll to see how readers of this blog plan to handle this new option.

Please vote and then click “see results” to see how others replied.

[polldaddy poll=4334263]

Do you plan to disclose the reasons for lack of independence in a compilation? Read More »

Option to explain reasons for lack of independence in SSARS 19 compilation

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An option to disclose the reasons for a lack of independence when performing a compilation has been introduced by SSARS 19.  Now the accountant can explain in the report why independence is impaired.  Previously, the accountant could not provide any explanation for lack of independence.

Here are some examples along with a rather important condition.

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Option to explain reasons for lack of independence in SSARS 19 compilationRead More »

Option to explain reasons for lack of independence in SSARS 19 compilation Read More »

SSARS 19 – Sample compilation report for omitting the statement of cash flow

1 Comment / Compilations & reviews /

Omission of cash flow statement– Compilation reports will change for organizations with fiscal years ending after December 15, 2010. Here is the modified report I will be using after the first of the year for my non-profit clients if any would choose to omit the statement of cash flow. I doubt that will happen in my client base, but wanted to make this example available to the CPA community.

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

 

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SSARS 19 – Sample compilation report for omitting the statement of cash flowRead More »

SSARS 19 – Sample compilation report for omitting the statement of cash flow Read More »

SSARS 19 – Sample compilation report for omitting substantially all disclosures

1 Comment / Compilations & reviews /

Omission of substantially all disclosures — Compilation reports will change for organizations with fiscal years ending after December 15, 2010. I have prepared a modified report for departure from GAAP.  Here is the report I will be using after the first of the year for my non-profit clients if any choose to omit all disclosures.  Please feel free to copy, but make sure you modify this based on your firm’s policies.

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

 

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SSARS 19 – Sample compilation report for omitting substantially all disclosuresRead More »

SSARS 19 – Sample compilation report for omitting substantially all disclosures Read More »

What in the world are presumptively mandatory and unconditional requirements? And why does SSARS 19 talk about should and must?

1 Comment / Compilations & reviews /

What in the world are unconditional requirements and presumptively mandatory requirements?

If you provide audits to your clients, you know those terms.  If you don’t deal with audits in your firm, these are two very weird terms in the SSARSs world, newly introduced by SSARS 19. These phrases have been around since SSARS 16, which was effective December 2007.  The impact hadn’t been that large because there was only SSARS 17 and 18.  These two phrases are lots more important since they show up in SSARS 19 quite frequently.

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What in the world are presumptively mandatory and unconditional requirements? And why does SSARS 19 talk about should and must?Read More »

What in the world are presumptively mandatory and unconditional requirements? And why does SSARS 19 talk about should and must? Read More »

A creative way to communicate fraud prevention to your clients

Leave a Comment / Audits, Compilations & reviews /

As CPAs, we look for creative ways to persuade our clients to implement good internal controls.  I fear that our comments as CPAs usually fade along with all the other you-gotta’-do-this-now messages in our regulatory heavy culture.  Another approach is to explain the devastation that arises from fraud.  I have a new post at my other blog that takes this approach:  The tragedy of fraud.  …

A creative way to communicate fraud prevention to your clientsRead More »

A creative way to communicate fraud prevention to your clients Read More »

Welcome to my new blog!

Leave a Comment / Accounting, Audits, Compilations & reviews /

Greetings, and welcome to my new blog.  I am still blogging at Nonprofit Update, found at www.ulvog.wordpress.com.  Why the new site?  I am talking to two very different audiences: the nonprofit community and CPAs working in the attestation area.  Thus, I will split my writing between two different blogs. 

Many of the previous posts of interest to CPAs have been brought into this blog.  Some of these posts are deleted from the other blog and some are left there.  In the future, posts related to the NPO world will be at www.ulvog.wordpress.com, comments specific to the CPA community will be here, and comments of interest to both will be cross-posted.

I hope this will be of help as you keep up to date with the torrent of changes in the attestation world.  Enjoy!

Welcome to my new blog! Read More »

SSARS 19 Review reports for NPOs

1 Comment / Compilations & reviews /

Review reports will change starting December 31, 2010.  Two sample reports follow.

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

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SSARS 19 Review reports for NPOsRead More »

SSARS 19 Review reports for NPOs Read More »

SSARS 19 Compilation reports for NPOs

5 Comments / Compilations & reviews /

Compilation reports will change starting December 31, 2010.  Some sample reports follow.

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

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SSARS 19 Compilation reports for NPOsRead More »

SSARS 19 Compilation reports for NPOs Read More »