SAS: Nonissuers- AICPA (ASB-Acct Standards Board)
AS: Issuers- PCAOB
SSAE- Attestation Engagements *Independence Required
Examination- Positive Opinion- High Assurance (Reasonable)*Opinion
Review- Negative- Limited/Negative Assurance (Moderate)*Conclusion
Agreed-upon Procedures- No Assurance- procedures/findings listed (no opinion/ conclusion)
• Agreed-upon procedures (restriction of use)-AICPA
• Financial forecasts and projections* (hypothetical -restrict use)
• Pro Forma FS
• Compliance (must have audited FS)
• MD&A
• Reporting controls at service org
*Restrict USE: When reporting on an assertion
Examination of Financial Forecast:
• Evaluate preparation, Evaluate support for assumptions, Evaluate presentation AICPA, Issue report
SSARS- Statements on Standards for Accounting and Review Services
Preparation, Compilation, Review: Unaudited, Historical FS (Nonissuers)
Preparation, Compilation: Pro Forma FS
Compilations: Prospective FS
Preparation: Independence NOT required, nor considered
Compilations: Independence NOT required, but Disclosure!
Reviews Overview:
SSARS: Review- Unaudited FS, Nonissuers
PCAOB: Review- Unaudited FS, ISSUER
SAS: Review- Audited FS, Nonissuers
SAS: Review- Interim FS Nonissuers
*Reviews: Each Page of Nonissuers FS- “See independent auditors report”
PRO FORMA VS. PROSPECTIVE
Pro-formas are “as if” financials – present financials to include the effect of a current transaction as if the transaction had occurred X years ago.
Prospective financials are forward-looking and include your financial projections as well as financial forecasts.
*May be included in a doc with Audited Financials