SSARS No. 25: Materiality in a Review of Financial Statements & Adverse Conclusions-2021

  • Credits: 4
  • Format: Self-Study eBook
  • Field of Study: Auditing
  • Author/Speaker: Steven C. Fustolo, CPA
Course ID: Advanced Preparation: Experience Level:
SF-324.S None Overview
Published Date: Program Prerequisites: Other Course Formats:
© January 2021 General understanding of compilation and review standards Self-Study eBook

The purpose of this course is to inform the reader of the various changes made to the compilation and review codification by the issuance of SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions, include changes made to AR-C 60- General Principles, AR-C 70- Preparation of Financial Statements, AR-C 80- Compilation Engagements, and AR-C 90- Review of Financial Statements.

The course addresses the three types of engagements that can be performed under the SSARSs: a preparation of financial statements engagement, a compilation engagement, and a review engagement.

Topics include:
  • Expanding the use of the disclaimer report in a preparation engagement.
  • Changes involving the reporting on the contractual basis of accounting.
  • New requirements to define materiality in a review engagement.
  • Expanded inquiries and management representations in a review engagement.
  • The new modified conclusions.
  • Guidance ongoing concern in a review engagement.

Learning Objectives:

After reading the course material, you will be able to:

  • Identify engagement types that are (and are not) authorized under the SSARSs.
  • Recognize a precondition for an accountant to accept an SSARS engagement.
  • Identify what is required for an accountant to perform a preparation engagement.
  • Recall whether the preparation of financial statements standard is an attest or non-attest service.
  • Recognize whether an accountant and a client must sign an engagement letter for preparation of financial statements engagement under AR-C 70.
  • Identify whether a report is required in the preparation of financial statements engagement under AR-C 70.
  • Recognize what the reporting requirements are if any when a "no assurance" legend is omitted from prepared financial statements under the AR-C 70 standards.
  • Identify where to disclose GAAP departures in a preparation of financial statements engagement.

Who Should Attend:
  • All Certified Public Accountants (CPAs)

Qualifies and Approved with All State Boards of Accountancy and the following sponsorship’s: