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AR Section 80/90 give examples of Comilation/Review reports in the Authoritative Literature.

“Independent Accountant’s Review Report

[Appropriate Salutation]

I (We) have reviewed the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. A review includes primarily applying analytical procedures to management’s (owners’) financial data and making inquiries of company management (owners). A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, I (we) do not express such an opinion.

Management (owners) is (are) responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

My (our) responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require me (us) to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. I (We) believe that the results of my (our) procedures provide a reasonable basis for our report.

Based on my (our) review, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

[Signature of accounting firm or accountant, as appropriate]

[Date]

Standard accountant’s review report on financial statements prepared in accordance with the income tax basis of accounting “

THEN….

CPAreviewforfree.com simulation package for Review and Compilations shows an answer that does not conform with the authoritative literature. In this case, I would have gone with the literature and missed the whole question.

Anyone have any input here? Any advice would be appreciated.

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AUD 73 (Aug 12) 77
BEC 66 71 (Nov 12) 80
REG 54 81 (May 13) 81
FAR 63 (Dec 13) 75 TEXAS