Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits 2.5 CPE

A CPA may perform various attest services under relevant professional standards, including compilations, reviews and audits. Reviews and audits are also considered assurance services, providing either limited or reasonable assurance that financial statements are free of material misstatement. In addition, the CPA may perform non-attest services, such as bookkeeping or preparation of financial statements. CPAs must fully understand the professional responsibilities related to each of these varying levels of services, in order to effectively and efficiently satisfy engagement objectives.

Major Topics:

• Compare and contrast the basis and requirements of preparing financial statements, compilations, reviews, and audits
• Critical elements of compilation, review, and audit reports
• Impact of special purpose accounting frameworks and other special issues
• Exercise on designing inquiries and analytics in a review
• Case study differentiating the scope of various non-attest and attest services
• Avoiding litigation risks in accounting services

Prerequisites

No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Accountants who provide attest services, such as compilations, reviews, and audits.

Learning Objective

• Explore and explain how to avoid litigation risk in bookkeeping services.
• Explore and explain the basis and requirements for a compilation contrasted with preparing financial statements.
• Discover and discuss special purpose framework and other issues.
• Discover and describe the basis and requirements for a review.
• Explore and explain the basis and fundamental requirements for an audit.

Last updated/reviewed: March 23, 2024