compilation

CCH running sale on Compilation and Review CPE courses

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CCH sent out the following announcement:

 

 

Full disclosure: I am the author of seven of those courses. I was compensated to write the courses but don’t receive any additional comp after the courses were finished. Also, don’t get anything for telling you about the courses.

There’s another course I wrote for CCH that isn’t listed above:

Obviously, I think the courses would be big help for you and your staff. And there’s that 15% discount through the end of March.

Newest book on differences between audits, reviews, and compilations now available in print and for Nook

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Print copy and Nook e-book are in addition to availability for the Kindle and another half-dozen formats.

audit review compilation cover for wordpress croped

The book is an intentionally short read at about 30 pages. The print copy has 20 pages of text.  Focus is to quickly describe the differences between those levels of services using three illustrations:

  • A football game – How does advancing to the 10-yard line compare to an audit?
  • What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to different levels illustrates the differences between the levels of service.

It also explains the differences in plain language. Well, at least using less accountantese than you would usually get from an accountant.

This is a compilation of posts previously appearing on my blogs, with slight editing.

Where can you find the book?

Print book at Amazon here.

Nook e-book at Barnes and Noble here.

Kindle e-book at Amazon here.

Also available here in other formats:

  • ePub format for your iDevices
  • PDF
  • text
  • Mobi for your Kindle device

Compilation and Review Update

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Here’s a list of recent posts describing what’s going on in the comp and review world: proposed changes to compilation rules & report; a new “preparing” service, and highlights of 13/14 Comp and Review Alert.

Proposed changes to compilation rules:

“Preparation” of financials”

Comp and Review alert highlights:

 

Brief summary of proposed changes to compilation rules

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A short article in the Journal of Accountancy provides a great summary of the likely changes to SSARS for compilations and ‘preparing’ financial statements. Check out A makeover for compilations by Mike Glynn, CPA. It is a fast read at only 700 words.

Update – See also:

Two of many key points:

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Brief summary of proposed changes to compilation rulesRead More »

Frequent issues on Compilations during peer reviews – from the 13/14 Comp and Review Alert

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The Compilation and Review Developments – 2013/14 Alert provides some comments on issues that pop up during peer reviews of Compilation engagements.

Previous post mentioned common issues in reviews.

A wise CPA would read through this list and mentally check to see if any of those issues are present in his or her reports.

Here’s a few common issues on comps.

Proper title on financials

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Frequent issues on Compilations during peer reviews – from the 13/14 Comp and Review AlertRead More »

“Audit. Review. Compilation. What’s the difference?” – New book now available.

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Audit. Review. Compilation. What’s the difference? – Illustrations using a football game, buying a used car, and filling a bucket.

audit-cover

What’s the difference between getting an audit, review, or compilation from your CPA firm? This short, 29 page book will help you understand.

Three illustrations help explain the differences:

  • A football game – How does advancing to the 10-yard line compare to an audit? What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to three different levels illustrates the differences between three levels of service.

This is a compilation of articles at my blog, Nonprofit Update.

The book is now available at Amazon.

Now available here in other formats:

  • ePub format for your iDevices
  • PDF or text
  • Mobi for your Kindle device

Soon to be available at Barnes and Noble.

Proposed revision to compilation rules, including new reports

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In October 2013, the ARSC issued an exposure draft to revise the compilation standards. Two of the major changes are a requirement for the engagement letter to be signed by management and a completely new comp report.

The ED is Proposed Statements on Standards for Accounting and Review Services: Preparation of Financial Statements, Compilation  Engagements, and Association With Financial Statements

One key change is a signed, written engagement will be required for a compilation report.  That is discussed in a previous post,

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Proposed revision to compilation rules, including new reportsRead More »

Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.

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The two exposure drafts (ED) to revise the compilation process and to create a new level of service for CPAs, now called preparing, will both require a written understanding with the client that is signed by the accountant and management.

Shall we just call that a signed engagement letter? I’m not quite sure what other characterization would apply.

There is a list of specific items that have to be addressed in the engagement letter.

Presumptively mandatory requirement

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Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.Read More »

New level of service from CPAs – “Preparing” financial statements

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In October 2013, one of the accounting rule setters issued a proposal which creates a new level of service for CPAs. This will be called preparation of financial statements.

Such service will not be subject to the same rules that govern compilations, reviews, or audits.

When the client organization and CPA agree to this approach, the accountant can issue a set of financial statements without any cover report from the accountant. 

The accountant will not be obtaining any assurance on the financial statements and users should not infer any assurance.

I think this will be a big deal.

Technical description

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New level of service from CPAs – “Preparing” financial statementsRead More »

4 SSARS exposure drafts

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A new service provided by CPAs which won’t require an accountant’s report. It is called ‘preparation’ of financial statements.

Big revision to compilation standards.

Revision of the SSARS into clarity format.

I’ve not mentioned these four exposure drafts, since I’m only diving into the details now.  You can find the exposure drafts on this page.

The specific links are:

These will be a big deal. I think you will really like them.

Football as illustration of differences between audits, reviews, and compilations

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Since football season is in full swing, let’s go to the nearest stadium to compare an audit to a review, to a compilation, and to the newest level of service, a preparation report.

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

Audit

If you were performing an audit, you would be on the field and receive the kickoff at your 20-yard line. A series of passes and runs would slowly move the ball. With effort you would advance to your opponent’s 10-yard line. Good touchdown position.

Advancing the football would be the same as gathering evidence to provide you a reasonable level of assurance so you could issue an audit opinion on the financial statements.

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Football as illustration of differences between audits, reviews, and compilationsRead More »

Compilation and Review CPE courses by James Ulvog

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Looking for on-line CPE courses on compilations and reviews? I’ve written or revised a series of courses for CCH which you can find linked below. I’ve quoted liberally from the CCH site. Here is a list of courses with descriptions to follow:

Course summaries:

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Compilation and Review CPE courses by James UlvogRead More »