BU477 Lecture Notes - Lecture 30: Analytical Review, Internal Control, Financial Statement
Document Summary
Le(cid:448)el of assura(cid:374)(cid:272)e a(cid:374)d users" needs many non-public companies have their f/s reviewed or complied by a pa: review provides limited assurance on f/s, compilation provides no assurance, assurance wise, audit (reasonable) >review (limited) >compilations (none) Review engagement process: review engagement primary consists of inquiry, analytical procedures, and discussion. Its accounting records and employees: the basis, form, and content of the f/s, a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g (cid:373)atters pe(cid:272)uliar to the (cid:272)lie(cid:374)t"s (cid:271)usi(cid:374)ess i(cid:374)dustry, design inquiries and analytical procedures, and discussion during the engagement, perform procedures and any additional procedures necessary. Criteria for accepting a compilation engagement: accountant must have no reason to believe that the statements are false or misleading, the client clearly understands the nature and scope of the engagement, including its limitations. Interim f/s may be audited, review, or compiled by a pa: report is not public and is provided to the audit committee, to provide assistance to the audit committee.
