ACC 645 Module Three Activity Guidelines and Rubric

Overview

You are a senior auditor at an accounting firm, ABC Financial Services. As part of your role, you have been assigned to lead a team of junior accountants in preparing SSARS engagements for several clients.

One of your junior team members, Sarah, was responsible for preparing a review engagement for a small manufacturing company. Upon examination of Sarah's work, you notice a few discrepancies and realize that crucial information seems to be missing: she mistakenly prepared a compilation engagement instead of a review engagement.

This assignment will help you explain the limitations of each SSARS engagement.

Resources:

1.) https://pdhacademy.com/wp-content/uploads/2016/08/CPA08-SSARS-21-Update-Part-2.pdf

2.) https://www.journalofaccountancy.com/issues/2018/aug/aicpa-compilation-and-review-report-requirements-201818993.html

3.) https://www.aicpa-cima.com/professional-insights/video/what-is-the-difference-among-a-compilation-review-and-audit

4.) https://us.aicpa.org/content/dam/aicpa/research/standards/compilationreview/downloadabledocuments/ar-00060.pdf

Directions

Use the resources to write an email for your colleague Sarah highlighting the key differences between preparation, compilation, and review engagements. (provide a detailed explanation for each SSARS engagement)

Specifically, you must address the following rubric criteria:

1. Describe the elements of a compilation engagement that should not be included in a review engagement. (Provide 6 or more elements with details)
2. Compare the limitations of the level of service for each SSARS engagement type: preparation, compilation, and review engagements. (Provide detailed limitations for each)
3. Recommend the appropriate level of service that should be provided while conducting a proper SSARS review engagement. (Provide 6 or more recomendation with details)