Is assurance provided in a compilation engagement?
No, zero assurance is provided in a compilation engagement. In a compilation engagement, the accountant is basically compiling the financial statements for management, so the accountant cannot express an opinion on the fairness of the financial statements.
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What is a compilation engagement?
In a compilation engagement, the accountant basically reads the financial statements that were prepared by management and determine if they are appropriate in form and free from obvious material errors. Independence is not required in compilation engagements, however, if the practitioner is not independent, they must make that disclosure on every page of the compilation...
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What types of engagements are performed under SSARS?
There are three different types of engagements that an accountant can perform under SSARS. This includes a review (for nonissuers only), a compilation, and a preparation engagement.
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What is the difference between a review under SSAE standards and a review under SSARS?
The deciding factor is the type of client the company is. If the client is an issuer (i.e. public company), then a review engagement is subject to SSAE standards. If the client is a non-issuer (private), then the review engagement is subject to SSARS standards.
What is a compilation engagement?
In a compilation engagement, the accountant basically reads the financial statements that were prepared by management and determine if they are appropriate in form and free from obvious material errors. Independence is not required in compilation engagements, however, if the practitioner is not independent, they must make that disclosure on every page of the compilation...
What types of engagements are performed under SSARS?
There are three different types of engagements that an accountant can perform under SSARS. This includes a review (for nonissuers only), a compilation, and a preparation engagement.
What is the difference between a review under SSAE standards and a review under SSARS?
The deciding factor is the type of client the company is. If the client is an issuer (i.e. public company), then a review engagement is subject to SSAE standards. If the client is a non-issuer (private), then the review engagement is subject to SSARS standards.
