[AUD] SSARS ( preparation compilation review interim audit )

 

SSARS

info in the form of FS that is the representation of mgt

 

SSARS > accounting & review service committee

* GAAP > FASB  / single audit > GAO

 

1. Preparation

Preparation	Not preparation
Preparing a working trial balance Preparing standard monthly journal entries	reproducing client-prepared FS, without modification Drafting Notes for the client(not SSARS)

 

Engagement letter ( no rep letter) > mgt resp: accuracy, completeness

 

No Report

 "no assurance is provided" on each page of FS

 if not > 1) issue disclaimer, 2) compilation engagement, 3) withdraw

 

Not GAAP (OBOCA)

 include a description of FR framework(preparation은 auditor가 해줌)

 > face of FS/ note

 

2. Compilation

to assist mgt in presenting financial info in the form of FS

 

Engagement letter

   the effect that independence impairments, if present, will have on the expected form of the accountant's report

   mgt reps FS 

understand client's accounting principles, business transaction

read 

 

Report 

Mgt resp FS, GAAP               + FS "see accountant's compilation report"
Auditor resp SSARS, AICPA
audit x, review x, accuracy x, completeness x
opinion x, conclusion x, any assurance x
manual signature x

 

Fraud

report to appropriate level of mgt(written not required)

근데 auditor document에는 내용이 다 적혀있어야함

 - no assurance engagement does not require the accountant to verify the accuracy of FS

    > cannot be relied upon to disclose error, fraud illegal act

 - not require to assess fraud risk

 

Not GAAP (OBOCA) > +E

disclose the basis of accounting

mgt resp > note 

Auditor resp > modify the report

 

Wrong GAAP > +E

MM > 맞는건 뭐지?, additional revise info > Mgt 고칠꺼야? > Report departure F GAAP / withdraw

 

Lack of independence, > + E

disclose

 

can be omitted, if the intent is not to mislead users > + seperate P

include paragraph disclosing such omission

omitted disclosures included, might influence the user's conclusion

 

 

Review

limited assurance(negative assurance)

 

Engagement letter

understand client's accounting principles, business transaction

read 

inquiry

analytical procedure

rep letter

Should perform in review	Should not
cash restriction AR cutoff(control) not best Related P T Perform a reasonableness test of the balance by computing days' sales in receivables	test of accounting record/ mgt's assertion inquries of atterney, contingent liability recalculate-individual account

 

Report

Title      + FS "see accountant's review report"
Intro
reviewed
AP, inquiry
less in scope than an audit, do not express op
Mgt resp
prepare and fairly presents FS, GAAP
DIM, ICFR
Audit resp
SSAR, AICPA
limited assurance, M modification
result of conclusion
independent, ethical
Conclusion
not aware of M modification that should be made

 

Wrong GAAP > Q /A

communicate to mgt(document), investigate x > mgt consider effects to FS > Q / A (scope limitation withdraw)

MM > 맞는건 뭐지?, additional info, but no investigation > Mgt 고칠꺼야? > Q /A

scope limit > withdraw

 

Not GAAP (OBOCA) > +E

disclose the basis of accounting

mgt resp > note 

Auditor resp > modify the report

 

Going concern > + E

disclose

 

Lack of independence > withdraw

 

Continuing accountant

C R      R C	Reissue(보고서2개), EM, Combined
A R    A C	Reissue(보고서2개), EM
R A    C A	Reissue(보고서2개), OM

 

Interim Audit

objective: Whether material modification should be made to confirm w GAAP

+ Understand IC / not perform (inquiry)

+ Update accountant's knowledge: consider results of PY + audit procedure performed w CYFR

+ Understand with client > learning / Obtain understand entity & environment > inquiry > analytical procedure

 

IC with material weakness: accountant identify the types of material misstatements

Identified risks of material misstatement due to fraud help the accountant to identify the types of material misstatements that may occur in the interim financial information, and to consider the likelihood of their occurrence

The nature of corrected misstatements should be considered, as they may be indicative of an ongoing problem. Uncorrected misstatements must also be considered as misstatements in one period often affect subsequent periods.

 

 

registration statement, prospectus

> not part of a registration statement with Securities Act of 1933