See my book on Amazon: Preparation of Financial Statements and Compilation Engagements: https://amzn.to/3IVWFP2.

In this video, I explain the key differences in compilations, reviews, and audits. The compilation standards are in AR-C 80 and the review engagement standards are in AR-C 90. Both are a part of the AICPA’s Statements on Standards for Accounting and Review Services (SSARS). The codified audit standards from the AICPA provide guidance for audit engagements. Understanding the key differences in these standards will enable you to deliver the right level of service to your CPA firm clients.

#CPAHallTalk

0:00 Introduction
0:03 Compare compilations with reviews
0:08 Compare reviews with audits
0:28 Bank wants financial statements
0:36 Compilation Engagement
1:43 Review Engagements
1:52 Limited Assurance
3:24 Focus on most important numbers
3:48 Representation Letter
4:10 Financial statements must be full-disclosure
4:54 Compare audits with reviews
5:34 Reasonable assurance
5:57 Audit Procedures
6:33 Risk assessment provides the basis for procedures
6:55 Test of details
7:06 Substantive analytics
7:41 Test internal controls
8:27 Time requirements
9:41 Those charged with governance
10:05 No assurance
10:30 High (reasonable)
11:01 Risk assessment informs your procedures