[Vanessachy]

Which of the following actions should an accountant take when engaged to compile a company’s financial statements in accordance with Statements on Standards for Accounting and Review Services (SSARS)?

A. Perform analytical procedures

B. Express negative assurance on the financial statements

C. Make management inquiries and examine internal controls

D. Perform the engagement even though independence is compromised

The answer is D, but I feel A is correct as well. Review engagement does require analytical procedures

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[wombataholic]

The question says compile the company's financial statements, not review. Reviews do require analytical procedures. Compilations don't.

Licensed CPA
Passed each section on the first try with Ninja Notes/MCQ/Audio

[Pete]

Yea, for compilations think “I don't give a shit how accurate the clients data is at all.” Sure, if there's an obvious error, you would care, but basically what I said holds true. Just gotta read VERY carefully. I got this one wrong as well, when I took this part.

B=84 This exam was such a b**** that I thought I failed-don't know how these things work
A=76 Slacker I am, I'll happily take it
R=81 I LOVE taxes
F=80 I don't wanna get banned for an expletive I'm thinking with "yea" proceeding it

[Nessie]

Vanessachy,

Thy are using the word “compile” so a little light bulb should go off and that means it is actually a compilation, the least analytical of the 3 (compilations, reviews, full blown audits). Compiling is actually putting everything together and doing the return for the company or client.

Think of you compiling your Mom's return. Would you have to be independent? No, of course not. Neither would an in-house accountant compiling his or her own company's return.

Hope this helps.

REG Aug 20/15: 88
AUD: Feb 29/16: 80
FAR: Jun 10/16: 80
BEC?

Becker self-study, Becker Final Review & NINJA MCQS

[Missy]

Compiling financial statements isn't really anything more than basic bookkeeping for them. You've got all the data and are just presenting an income statement and balance sheet on their behalf.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Vanessachy]

@Nessie, omg, missed one word and made a huge difference. Thanks guys for the response.

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[Nessie]

Yes Vanessachy, I used to as well. We are so used to seeing the exact word, when we have to decipher a little/read question too quickly…Woosh it goes over our heads. Compile, compiling…etc.

REG Aug 20/15: 88
AUD: Feb 29/16: 80
FAR: Jun 10/16: 80
BEC?

Becker self-study, Becker Final Review & NINJA MCQS

[Spartans92]

Wow Im surprised I still remember Audit and it has been 2 months. Should stuck with it and get that 75 instead of moving on. I feel like that was a bad idea for scheduling all my exams. 🙁

Also, SSARS engagements do not require independence however should be disclosed if impaired. Am I right? Audit was so much easier to study for. Hope I don't see too many FAR based SIMS on my retake in the future.

BEC- PASS

[Vanessachy]

@spartans92, yes complication without independence needs to be disclosed, but review needs independence.
I feel like I am going to be ready on 5/9, and good luck to you

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[Author]

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