Table of Contents

Section I - Overview of the New Standards. 10

Section II - AR-C Section 60- General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. 21

II. AR-C Section 60- General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. 21

A. Introduction. 21

B. Key Changes Made in AR-C 60. 21

C. Definitions. 22

D. Requirements for Performing SSARS Engagements. 24

Section I & II Review Questions. 35

Section III - AR-C Section 70- Preparation of Financial Statements. 36

III. AR-C Section 70- Preparation of Financial Statements. 36

A. Effective Date. 36

B. Introduction. 36

C. Scope of AR-C 70. 37

D. Definitions. 44

E. Summary of a Preparation of Financial Statements Engagement 46

F. General Rules in Applying a Preparation of Financial Statements Engagement Under AR-C 70. 49

G. Specific Rules for Preparing Financial Statements per AR-C 70. 52

H. Documentation in a Preparation Engagement 62

I. Engagement Letter- Preparation of Financial Statements Engagement 63

J. Exhibit Illustrative Engagement Letters - Preparation Engagement 64

K. Illustrative Financial Statements -AR-C 70. 69

L. Preparation of Personal Financial Statements. 93

Section III Review Questions. 103

Click here to see Answers to Review Questions at end of EBook. 105

Section IV - AR-C Section 80- Compilation Engagements. 106

IV. AR-C Section 80- Compilation Engagements. 106

A. Introduction. 106

B. Effective Date. 108

C. Scope of AR-C 80- Compilation Engagements. 108

D. Objective of a Compilation Engagement 111

E. Definitions. 111

F. Requirements- Compilation Engagements- AR-C 80. 112

G. Engagement Letter- Compilation. 115

H. Performing a Preparation Engagement at Interim- Independence Issues. 131

I. The Accountants Knowledge and Understanding of the Entitys Financial Reporting Framework- Compilation Engagement 133

J. Compilation Procedures. 134

K. The New Accountants Compilation Report 135

L. Elimination of Management-Use Only Financial Statements. 150

M. Examples of the Accountants Compilation Reports on Financial Statements. 151

N. Documentation in a Compilation Engagement 164

O. Change from an Audit or Review Engagement to a Compilation Engagement 164

P. Compilation of Personal Financial Statements. 165

Section IV Review Questions. 171

Click here to see Answers to Review Questions at end of EBook. 173

Section V - AR-C Section 90: Review of Financial Statements. 174

V. AR-C Section 90: Review of Financial Statements. 174

A. Introduction. 174

B. Scope of AR-C 90- Review Engagements. 175

C. Effective Date. 177

D. Objective. 177

E. Definitions. 177

F. Requirements for Performing a Review Engagement Under AR-C 90. 179

G. Illustrative Engagement Letters. 184

H. Communication with Management and Those Charged with Governance. 193

I. Understanding of the Industry. 194

J. Knowledge of the Entity. 195

K. Designing and Performing Review Procedures. 195

L. Analytical Procedures. 196

M. Inquiries of Members of Management Who Have Responsibility for Financial and Accounting Matters 198

N. Reading the Financial Statements. 200

O. Using the Work of Other Accountants. 200

P. Reconciling the Financial Statements to the Underlying Accounting Records. 201

Q. Evaluating Evidence Obtained from the Procedures Performed. 201

R. Materiality. 202

S. Written Representations in a Review Engagement 203

T. Reporting on the Financial Statements. 211

U. Review Documentation. 245

VI. Implementation of SSARS No. 21. 245

Section V Review Questions. 247

Click here to see Answers to Review Questions at end of EBook. 249