SSARS engagements: preparation, compilation, and review

The rules, one page each

1. Pick the right SSARS service: preparation vs compilation vs reviewSort it

   Under SSARS: Preparation = prepare FS only, no report, no assurance. Compilation = issue a report that provides no assurance. Review = perform inquiry and analytics and issue limited assurance; independence and a written rep letter are required.

2. Compilation Report Wording for Lack of IndependenceSort it

   A compilation may be performed without independence, but the report must state that the accountant is not independent. Reasons are optional; if reasons are disclosed, include all reasons.

3. SSARS review must-haves: independence, rep letter, withdrawal or change to compilationDecision tree

   For a SSARS review, independence and a written management representation letter are required; without either, do not issue a review report and ordinarily withdraw. Do not issue the report before obtaining the rep letter. A change from review to compilation is allowed only if justified by circumstances, not to avoid reporting a misstatement.

4. SSARS Review: Qualified Conclusion for a GAAP DepartureDecision tree

   If management refuses to correct a material but not pervasive GAAP departure, issue a qualified review conclusion. A separate basis section describes the departure and quantifies its effects when practicable; otherwise, state that effects are not reasonably determinable.