2-1 Assignment ACC 645 Southern New Hampshire University 02:17:24 GMT -05:00 Hello everyone. Today we are going to discuss the key aspects of SSARS engagements, which include compilation, review, and preparation services. These engagements are crucial to ensuring the quality and reliability of ...
, Hello everyone. Today we are going to discuss the key aspects of SSARS engagements,
which include compilation, review, and preparation services. These engagements are crucial to
ensuring the quality and reliability of financial statements for non-public entities. Let’s dive into
the primary objectives of each type of engagement, how they differ, and the methodologies
employed. First let’s dive into the objectives of each engagement.
“In a compilation engagement, the objective is to assist management in presenting
financial information in the form of financial statements without undertaking to provide any
assurance that there are no material modifications that should be made to the financial statements
so they will conform to the acceptable financial reporting framework.” (ASSURANCE |
Schwarcz CPA, PLLC, n.d.). The objective of a review engagement is to provide limited
assurance that no material modifications are needed for the financial statements to be in
accordance with the applicable financial reporting framework. This involves inquiries and
analytical procedures. In a preparation engagement the goal is to prepare financial statements in
accordance with a specific financial reporting framework without providing any assurance or
even issuing a report. It’s typically less formal and more flexible than compilations and reviews.
Now let’s distinguish the task objectives for each SSARS engagement. The CPA’s role
in a compilation is to compile the client’s financial data into financial statements, ensuring that
they are in the appropriate format, but not verifying the accuracy or completeness of the
information. During a review engagement the CPA performs procedures to provide limited
assurance on the financial statements. This includes making inquiries of company personnel
and performing analytical procedures, but not obtaining evidence through inspection,
observation, or confirmation. For a preparation engagement the CPA prepares financial
statements based on
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