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SSARS No. 25

Exam Questions: 20
Course Level: Basic
Pages: 118 | Content: 112, Supplemental: 6
NASBA Area of Study: Accounting
Not Acceptable for: Enrolled Agents
Version: 7860A

The purpose of this course is to inform the reader of the various changes made to the compilation and review codification by the issuance of SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions, including changes made to AR-C 60- General Principles, AR-C 70- Preparation of Financial Statements, AR-C 80- Compilation Engagements, and AR-C 90- Review of Financial Statements. Topics include expanding use of the disclaimer report in a preparation engagement, changes involving the reporting on the contractual basis of accounting, new requirements to define materiality in a review engagement, expanded inquiries and management representations in a review engagement, the new modified conclusions, guidance on going concern in a review engagement, and more. The course addresses the three types of engagements that can be performed under the SSARSs: a preparation of financial statements engagement, a compilation engagement, and a review engagement. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. No prerequisites. Course level: Basic.

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Course Information

Table of Contents
  • Overview of SSARS No. 25
  • Overview of Changes Made by SSARS No. 25
  • AR-C Section 60- General Principles for SSARSs
  • SSARS No. 25 Changes to AR-C 60- General Principles
  • SSARS No. 25 Changes to AR-C 70- Preparation of Financial Statements
  • SSARS No. 25 Changes to AR-C 80- Compilation Engagements
  • SSARS No. 25 Changes to AR-C 90- Review of Financial Statements
Objectives
  • To identify engagement types that are (and are not) authorized under the SSARSs
  • To recognize a precondition for an accountant to accept a SSARS engagement
  • To identify what is required for an accountant to perform a preparation engagement
  • To recall whether the preparation of financial statements standard is an attest or nonattest service
  • To recognize whether an accountant and a client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70
  • To identify whether a report is required in a preparation of financial statements engagement
  • To recognize what the reporting requirements are, if any, when a "no assurance" legend is omitted from prepared financial statements under the AR-C 70 standards
  • To identify where to disclose GAAP departures in a preparation of financial statements engagement
  • To recognize actions an accountant should take under SSARS No. 25 when a compilation is performed on the contractual basis of accounting
  • To identify factors that should consider in determining materiality in a review engagement
  • To identify the date as of which management representations should be made in a management representation letter for a review engagement
  • To recognize a change that SSARS No. 25 makes to the accountant's review report
  • To recall language that SSARS No. 25 requires to be included in a review report on the contractual basis of accounting
  • To identify the term that GAAP uses for management's assessment of an entity's going concern
  • To recognize the reporting requirements for going concern in a review engagement
  • To recall some of the items that should be documented in a review engagement

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