[shanek327]

Seems to be one of the confusing topics for AUD.

Do I understand correctly?…

Compilation we actually take the client’s info and develop FS’s

Review we review the FS’s they’ve already prepared to see if any material modifications need to be made in order for them to conform with the applicable framework.

Thanks!

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[acamp]

That sounds like it to me (but its been quite a while since I took AUD and I never do compilation work).

But I think of it as, in one you are in a preparation role and in the other you are in an assurance role (granted, with a review you give no opinion, but you are looking over the work which has been compiled by the Company).

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[WaivingMyHands_ALOT]

Compilation – You are not giving an opinion on financial statements, you are simply presenting the information management gave you to conform with presentation needed based on framework used. E.g., management gives you a list of a bunch of bank accounts. You sum them up and list them as current asset – cash on balance sheet. You do not send out confirmations to make sure these balances actually exists.

Review – Provide limited assurance that balances presented are materially accurate. E.g., management gives you a list of a bunch of bank account balances. You sum them up and compare the total balance to the last three year end balances to see if the balance appears reasonable (i.e., an analytical procedure). Based on reasonableness of balance, you provide limited assurance that accounts are not materially misstated.

Audit – Highest degree of assurance. You are actually providing an opinion on the balances/financial statements. E.g., manage gives you a list of a bunch of bank accounts. You send out bank confirmations to 80% of the accounts listed to confirm balances are accurate. Based on response (and other issues like internal controls, fraud risk, etc.), you form an opinion on whether or not balances are materially correct.

AUD 99
BEC 96
FAR 94
REG 96

[shanek327]

Thanks so much! One more clarification, compilations and reviews are done for non-issuers ONLY?

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[WaivingMyHands_ALOT]

Definitely more likely to issue a compilation or review for a nonissuer than an issuer (issuers required by SEC/securities laws to have audited financial statements), but I imagine there are circumstances where a compilation or review would be performed for an issuer.

More info here if needed. Has a decent chart comparing the three engagements:

https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/keepingup/downloadabledocuments/brochure%20customizable-%20difference%20between%20comp%20reviewaudit.pdf

AUD 99
BEC 96
FAR 94
REG 96

[WaivingMyHands_ALOT]

Definitely more likely to issue a compilation or review for a nonissuer than an issuer (issuers required by SEC/securities laws to have audited financial statements), but I imagine there are circumstances where a compilation or review would be performed for an issuer.

More info here if needed. Has a decent chart comparing the three engagements:

https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/keepingup/downloadabledocuments/brochure%20customizable-%20difference%20between%20comp%20reviewaudit.pdf

AUD 99
BEC 96
FAR 94
REG 96

[shanek327]

thanks a lot

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[acamp]

Remember: Issuers file quarterly statements (10-Q) which are reviewed every quarter!

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[If I can, u can too!]

@shanek327. Here's how I understand it:

unaudited non-issuer = SSARS

audited non-issuer = SAS

unaudited ISSUER = PCAOB

attestation services = SSAE

Reviews can be done for attestation engagements in which you would follow SSAE

NOTE: no reviews are done for prospective (forecast and projections) financial statements

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[Author]

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