[Anonymous]

Use the research material available to answer the following question. (See Research Task-Based Simulations for instructions.)

At the beginning of an engagement to compile Locomotiv Co.’s financial statements for Year 1, Stiles, CPA, asked you, as an engagement team member, to prepare a workpaper suggesting materiality in relationship to potential misstatements found while preparing the financial statements. Which section and paragraph of the AICPA’s Codification of Statements on Standards for Accounting and Review Services provide a list of reasonable assumptions you can make in regard to the users of the compiled statements for purposes or materiality?

Answer is: AR-C 90.A6

Section 90 Is Reviews. I kind of rely on getting the research questions right, so is this a typo or am I missing something that tells me that section applies even though it says “engaged to compile.”

[Biff-1955-Tannen]

I believe SSARS should apply to compiling historical information and non-issuers, and SSAE should apply to prospective information and issuers. Is that what you're wondering about, or were you wondering why it was section 90 in particular?

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Anonymous]

Section 90 is reviews, 80 is compilations.

[Author]

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