Title Details

Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession's technical and ethical standards.
The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.

1 Review of Financial Statements 01-241

Introduction 01-02

Applicability 03-04

Consideration of Materiality in a Review Engagement 05-11

Requirements 12-236

General Principles for Performing and Reporting on Review Engagements 12

Professional Skepticism in a Review Engagement 13-16

Engagement Level Quality Control in a Review Engagement 17-21

Independence 22-24

Preconditions for Accepting a Review Engagement 25-30

Communications with Predecessor Accountants 31-34

Agreement on Engagement Terms 35-38

Understanding of the Industry 39

Knowledge of the Entity 40-68

Designing and Performing Review Procedures 69-72

Analytical Procedures 73-113

Illustrative Analytics 114-119

Inquiries and Other Review Procedures 120-147

Illustrative Inquiries 148-149

Reading the Financial Statements 150-152

Reconciling the Financial Statements to the Underlying Accounting Records 153

Evaluating Evidence Obtained From the Procedures Performed 154-157

Written Representations 158-164

Communicating to Management and Others Regarding Fraud or Noncompliance with Laws and Regulations 165-172

Reporting on the Financial Statements — General 173-174

Reporting on Financial Statements Prepared in

Accordance with a Special Purpose Framework 175-179

Reporting on Comparative Financial Statements 180-186

Reporting on Known Departures from the Applicable Financial Reporting Framework 187-192

Emphasis-of-Matter and Other-Matter Paragraphs in the Accountant’s Review Report 193-197

Alert That Restricts the Use of the Accountant’s Review Report 198-201

Reporting on Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in another Country 202-205

The Accountant’s Consideration of an Entity’s Ability to Continue as a Going Concern 206-207

1 Review of Financial Statements—continued

Consideration of the Effects on the Accountant’s Review Report 208-209

Subsequent Events and Subsequently Discovered Facts 210-216

Initial Review Engagements — Opening Balances 217-219

Reference to the Work of Other Accountants in an Accountant’s Review Report 220-222

Supplementary Information That Accompanies Reviewed Financial Statements 223-225

Required Supplementary Information 226-228

Change in Engagement from Audit to Review 229-233

Review Documentation 234-236

Illustrative Engagement Letters 237

Illustrative Representation Letter 238-240

Illustrative Accountant’s Review Reports on Financial Statements 241

2 Compilation of Financial Statements 01-103

Introduction 01-02

Applicability 03

Requirements 04-87

General Principles for Performing and Reporting on Compilations of Financial Statements 04

Engagement Level Quality Control in a Compilation Engagement 05-09

Independence 10-11

Preconditions for Accepting a Compilation Engagement 12-17

Agreement on Engagement Terms 18-21

Knowledge and Understanding of the Entity’s Financial Reporting Framework 22-26

Reading the Financial Statements 27

Other Compilation Procedures 28-35

Reporting — General 36-37

Reporting — Financial Statements Prepared in Accordance With a Special Purpose Framework 38-41

Reporting — Financial Statements that Omit Substantially All the Disclosures Required by the Applicable Financial Reporting Framework 42-50

Reporting — Comparative Financial Statements 51-63

Reporting — When the Accountant Is Not Independent 64-66

Reporting — Known Departures from the Applicable Financial Reporting Framework 67-72

Reporting — Supplementary Information That Accompanies Financial Statements and the Accountant’s Compilation Report Thereon 73-75

Reporting — Required Supplementary Information 76-78

2 Compilation of Financial Statements—continued

Reporting — Alert That Restricts the Use of the Accountant’s Compilation Report 79-80

Reporting — Emphasis-of-Matter or Other-Matter Paragraphs 81

Reporting — Financial Statements Prepared in Accordance With a Prescribed Format 82-87

Compilation of Specified Elements, Accounts, or Items of a Financial Statement 88-91

Change in Engagement from Audit or Review to a Compilation Engagement 92-97

Documentation Requirements 98-100

Illustrative Engagement Letters 101

Illustrative Examples of the Accountant’s Compilation Report on Financial Statements 102

Exhibit — Compilation Reporting Requirements When Independence Is Impaired 103

3 Preparation of Financial Statements 01-50

Introduction 01

Applicability 02-07

Independence 08-09

Requirements 10-49

General Principles for Performing Engagements to Prepare Financial Statements 10

Engagement Level Quality Control in an Engagement to Prepare Financial Statements 11-15

Preconditions for Accepting an Engagement to Prepare Financial Statements 16-18

Agreement on Engagement Terms 19-22

Knowledge and Understanding of the Entity’s Financial Reporting Framework 23-27

Preparing the Financial Statements 28-34

Preparation of Financial Statements in Accordance With a Special Purpose Framework 35-36

Preparation of Financial Statements That Contain a Known Departure or Departures from the Applicable

Financial Reporting Framework 37-38

Preparation of Financial Statements That Omit Substantially All Disclosures Required by the Applicable Financial Reporting Framework 39-41

Preparation of Financial Statements Included in a Prescribed Form 42-44

Communication with Management 45-46

Documentation Requirements 47-49

Illustrative Engagement Letters 50

4 Compilation of Pro Forma Financial Information 01-24

Introduction 01

Applicability 02-03

Requirements 04-22

General Principles for Compilations of Pro Forma Financial Information 04-06

Acceptance and Continuance of Client Relationships 07-09

Agreement on Engagement Terms 10-13

The Accountant’s Knowledge and Understanding of the Entity’s Financial Reporting Framework 14

Compilation Procedures 15-16

The Accountant’s Compilation Report on Pro Forma Financial Information 17-20

Documentation 21-22

Illustrative Engagement Letter for a Compilation of Pro Forma Financial Information 23

Illustrative Accountant’s Compilation Report on Pro Forma

Financial Information 24

5 Preparing or Performing a Compilation or Review of Personal

Financial Statements 01-26

Introduction 01

Accounting Considerations 02-05

Internal Control With Respect to Personal Financial Statements 06-08

Agreement on Engagement Terms 09-11

Fraud and Illegal Acts in an Engagement to Prepare or in a Compilation or Review of Personal Financial Statements 12-14

Representation Letters 15-17

Compilation and Review Reports on Personal Financial Statements 18-20

Departures From the Applicable Financial Reporting Framework 21-22

Illustrative Engagement Letters 23

Illustrative Representation Letter 24-25

Illustrations of Accountant’s Compilation and Review Reports on Personal Financial Statements 26

6 Special Considerations — International Reporting Issues 01-25

Introduction 01-02

Applicability 03-04

Requirements 05-24

Considerations When Accepting the Engagement 05-09

6 Special Considerations — International Reporting Issues—continued

Compilation or Review of Financial Statements Prepared in Accordance With a Financial Reporting Framework

Generally Accepted in another Country 10-13

Application of another Set of Compilation or Review Standards 14-16

Reporting 17-24

Illustrative Examples of the Accountant’s Compilation and Review Report on Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country Performed in Accordance With SSARSs and Another Set of Compilation or Review Standards 25

Exhibit — Incremental Procedures Required to be Performed if a Review is to be Conducted in Accordance with SSARSs and International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements 26

Appendix

A Overview of Statements on Quality Control Standards

Glossary

Index of Pronouncements and Other Technical Guidance

Subject Index