[Mikey89]

Can someone explain the difference to me. I’m pretty confused. The aren’t they both for reviews and compliations?

Reg 4/18/12 78
Far 7/30/12 74, 74, 75
Bec 11/11/12 74, 78
Aud TBD 51, 71, XX

[Excited_CPA]

Hey Mikey89,

SSARS is for the compilations and reviews of historical financial data (instead of auditing FS, you're just compiling/reviewing them)

SSAES (for attest engagements) is for the compilations, reviews, examinations, and agreed-upon procedures for things other than historical financial data.

Hope this help! Good luck on auditing tomorrow.

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[devin]

SSARS: unaudited historical FS (Nonissuers)
• Preparation, Compilation (No Assurance)
o Independence NOT Required, Compilation, requires Paragraph
o Obtain understanding of Industry

• Reviews (Limited Assurance)
o Engagement Letter Required
o Independence Required
o Inquiries & Analytical Procedures

SSAE: Reasonable Assurance, Independence
• Examination- High Level of Assurance
• Review- Medium Level of Assurance
• Agreed Upon Procedures – No assurance
• Forecasts and Projections (Hypothetical)
• Compliance
• MD&A
• Control Service Orgs

*Pro Forma or Prospective Financial Statements SSAE

From EY: “Reporting on pro forma financial information is an attestation engagement covered by Statement on Standards for Attestation Engagements, Reporting on Pro Forma Financial Information (AT 401). Under AT 401, auditor’s reports for general distribution are limited to
(1) assurance based on an examination
(2) negative assurance based on a review.” https://www.ey.com/us/en/services/assurance/ey-pro-forma-financial-information-auditor-involvement

Devin

[devin]

SAS: Nonissuers- AICPA (ASB-Acct Standards Board)
AS: Issuers- PCAOB

SSAE- Attestation Engagements *Independence Required

Examination- Positive Opinion- High Assurance (Reasonable)*Opinion
Review- Negative- Limited/Negative Assurance (Moderate)*Conclusion
Agreed-upon Procedures- No Assurance- procedures/findings listed (no opinion/ conclusion)

• Agreed-upon procedures (restriction of use)-AICPA
• Financial forecasts and projections* (hypothetical -restrict use)
• Pro Forma FS
• Compliance (must have audited FS)
• MD&A
• Reporting controls at service org

*Restrict USE: When reporting on an assertion

Examination of Financial Forecast:
• Evaluate preparation, Evaluate support for assumptions, Evaluate presentation AICPA, Issue report

SSARS- Statements on Standards for Accounting and Review Services

Preparation, Compilation, Review: Unaudited, Historical FS (Nonissuers)
Preparation, Compilation: Pro Forma FS
Compilations: Prospective FS

Preparation: Independence NOT required, nor considered
Compilations: Independence NOT required, but Disclosure!

Reviews Overview:
SSARS: Review- Unaudited FS, Nonissuers
PCAOB: Review- Unaudited FS, ISSUER

SAS: Review- Audited FS, Nonissuers
SAS: Review- Interim FS Nonissuers

*Reviews: Each Page of Nonissuers FS- “See independent auditors report”

PRO FORMA VS. PROSPECTIVE
Pro-formas are “as if” financials – present financials to include the effect of a current transaction as if the transaction had occurred X years ago.

Prospective financials are forward-looking and include your financial projections as well as financial forecasts.
*May be included in a doc with Audited Financials

Devin

[Author]

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