Frequently Asked Questions

Understanding Compilations, Reviews, and Audits

Q. What are the alternatives to an audit engagement?
Q. What is the purpose of compilation or review engagements?
Q. What type of engagement requires the least amount of time?
Q. What procedures are required for a compilation engagement?
Q. What level of assurance is provided on a compilation engagement?
Q. What is the minimum level of service that an external CPA can provide when associated with the financial statements of a client?
Q. What additional procedures are required for a review engagement that are not required for a compilation engagement?
Q. What types of inquiries of client management are required for a review engagement?
Q. What analytical procedures are required for a review engagement?
Q. What is the purpose of the analytical procedures in a review engagement?
Q. What level of assurance can an accountant provide on reviewed financial statements?
Q. Why does the audit engagement provide the highest level of assurance on client's financial statements?
Q. What are some of the more important audit procedures?
Q. What is the auditors' responsibility with respect to detecting fraudulent financial reporting?
Q. What is the accountant's responsibility for detecting fraud in a compilation or review engagement?
Q. What is the level of assurance expressed on an audit engagement?
Q. What are two potentially less costly reporting options that are available for compilation, review and audit engagements?
Q. What are examples of comprehensive bases of accounting other than generally accepted accounting standards upon which financial information may be prepared?
Q. What does "level of assurance" mean?

Return to Article | Return to FAQ Main | Return to SBRC Main