SSARS - Compilation

Question 1

The engagement letter should contain this particular sentence

Answer 1

“You agree to hold us harmless and to release, indemnify, and defend us from any liability or costs, including attorney’s fees, resulting from management’s knowing misrepresentations to us.”

Question 2

Compilation includes

Answer 2

assisting management in presenting the FS (or other items) along with the accountants report

Question 3

Withdrawal cirumstances

Answer 3

If management has failed to provide records or information as requested or if management does not make appropriate adjustments as proposed by the accountant

Question 4

Report Structure

Answer 4

1 paragraph: 4 sentences

1. Management is responsible for the accompanying financial statements of XYZ Company, which comprise the balance sheets as of December 31, 20X1 and 20X2 and the related statements of income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America.
2. I (We) have performed compilation engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. I
3. (We) did not audit or review the financial statements nor was (were) I (we) required to perform any procedures to verify the accuracy or completeness of the information provided by management.
4. Accordingly, I (we) do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.

Question 5

Special Reporting Framework 
or
Known departures exist
or 
all disclosures are ommited

Answer 5

Add paragraph for each