alright. so, review engagement, it says..."the objective of the accountant when performing a review of statements is to obtain limitedassurance." yellow on the word "obtain," because it used to be "provide limited assurance."we don't provide it, now we have to obtain it through our inquiries and analytical procedures,that's one of the ways that they rewrote this. "as a basis for reporting whether the accountantis aware of any material modifications that should be made to the statements in orderfor them to be in accordance with the applicable financial reporting framework, primarily throughthe performance of inquiries and analytical procedures."so what i want you to see this, you need to remember, and that's what this last paragraph,the "accountant's conclusion," that is gonna
be the paragraph that basically says, that"based on our review, we are not aware of any material modifications that need to bemade to the accompanying financial statements in order for them to be in accordance withgap, or with whatever framework." that is the accountant's, and they will askyou that, and that terminology, you should remember, the way it's phrased, again, "basedon our review, we are not aware of any material modifications that need to be made." whatif you become aware? with the exception of the following paragraph, except for the nextparagraph, "we are not aware," and then in the extra paragraph, you're show how you areaware of non-gap. we'll look at that later, as an emphasis of a matter-type report.talks a little bit about materiality, that
is not addressed in ssars, okay, but it justtalks about what he's still concerned with, if it's something that's significant enoughto influence the user's decision, that's considered material or significant. "judgments aboutmateriality are affected by the size or nature of the misstatements, judgments about mattersare basically based on consideration, the common financial information needs of theusers as a group." they're just kind of defining what materiality is, which we've already donein previous sections. what are requirements in the review engagement?first of all, just like the others, you've gotta adhere to the ssars arc-60, those arethe general principles which we've talked about, the statements, ethics, professionaljudgment, conducted in accordance with ssars
standards, which means you need to be familiarwith the standards that relate to the service or engagement you're performing, and qualitycontrol as well. dropping down, we've got... "if the accountantis required to be independent," if you're not, "b-b-bye-bye-bye," withdraw, time toleave. who's saying that, was that n�sync, "b-b-bye-bye-bye," justin timberlake, littlejt? jt? alright. "in addition to the prior to the acceptedengagement, the account should obtain the client's agreement that it understands andaccepts responsibility for the preparation and fair presentation of the statements, toprovide the accountant with the letter of representation at the conclusion of the engagement,which is your management rep letter, and to
include the review report in any documentcontaining the reviewed financial statements." here's the engagement letter, talked aboutthe elements, all the same, addition, the expected form and content of the review report.coming back over here, what was in the letter? the objective, management's responsibility,accountant's responsibility, limitations, identify the applicable framework, and boom.here, expected a non-gap, here, the expected content inform of the report, compilationreport, here, lalalala, other review report. so again, that's great, we're just buildingon stuff we know. what does the review report look like? that'swhere we have to get into this, which is the meat of it, which is the four different paragraphs.alright. first of all, the title, which has
the word "independent." "independent accountant'sreview report," and remember, it's gonna have the word "independent" 'cause you'll haveto be independent, or you can't do a review. in a compilation, you generally will includethat, you don't have to have a title, but you will, usually, and when you're not independent,obviously get rid of the word "independent." appropriate addressee, "to the board of directors""of x co.," "stockholders of x co.," whatever. then, the introductory paragraph, which doesn'thave to have a title, but you can, that is the introductory. now, introductory, rememberthat, cheerleading in high, introduce yourself, "my name is roger dam, my name is," right,so that's what we're gonna do is introduce ourselves. so the introductory paragraph,let's just look at the... well, alright, introductory.
"identifies the statements that are reviewed,states the statements were reviewed, indicates a review as inquiry and analytical procedures,and states that a review is less in scope than an audit, and accordingly no opinion."huh? here's what its saying. it says a review is less than an audit, the purpose of whichis an opinion, accordingly, we do not express an opinion. so in that first paragraph, you'rebasically mentioning "we've reviewed," you mention the statements, you mention that areview is what? "ia," inquiry and analytical procedures, and it's less in scope than anaudit, we do not express an opinion. second paragraph, "management's responsibility,"we're gonna mention that management is responsible for the fair preparation and fair presentationof the financial statements in accordance
with, you know, generally existing standardsgenerally accepted in the united states, we're gonna mention dim, "design, implementation,and maintenance of internal control, relevant to the preparation and fair presentation ofthe statements, and without their free and material statements whether due they are fraud."so what we're talking about is we're addressing internal control here in this report. so we'readdressing the fact that that is what, management, so management is responsible for the framework,the fair presentation of the statements, and design maintenance and design, dim, design,implementation, maintenance, and material control, and to make sure that it's free oferror or fraud. our responsibility is to what? to conduct the audit in accordance with...ssars by the arsc of the aicpa.
so again, that's what we're doing, our jobis to obtain limited assurance as a basis for reporting as to, and kind of spellingit out, as to whether there are any material modifications that should be made to the statementsin order for them to be in accordance with accounting principles generally accepted inthe u.s., and then the last sentence, "we believe that the results of our proceduresprovide a reasonable base for our conclusion." what does that lead to? your conclusion. sothe conclusion is your last paragraph, so that conclusion leads to the last, called"accountant's conclusion." "based on our review. we are not aware of any material modificationsthat should be made to the accounting statements in order for them to be in accordance withthe accounting principles generally accepted
in the united states," so whatever the frameworkis.
0 komentar: