Reviews, Compilations & Agreed-Upon Procedures

Statements on Standards for Accounting and Review Services (SSARS)

	Preparation	Compilation	Review
Assurance	None	None	Limited
Independence	No	No (disclose)	Yes
Report	No — "no assurance" on each page	Yes	Yes
Representation letter	No	No	Yes

• Review = analytical procedures + inquiries; no internal control testing or corroboration.
• Review report: "not aware of any material modifications"; substantially less in scope than an audit.
• Rep letter refused in a review → withdraw.
• Compilation, not independent: disclose; if giving reasons, give all.

Agreed-upon procedures (Statement on Standards for Attestation Engagements (SSAE) No. 19)

Findings only · independence required · engaging party acknowledges procedures · general use allowed.

Interim reviews

Nonissuer: generally accepted auditing standards (GAAS), limited assurance. Issuer: quarterly review required before Form 10-Q.

Exam traps

• Review with an uncorrected material departure: disclose it in the review report (or withdraw) — there's no "qualified opinion" in a review.
• Changing from an audit to a review: the review report mustn't mention the original engagement or procedures performed.
• Statements on Standards for Accounting and Review Services (SSARS) cover nonissuers; an issuer's quarterly reviews follow Public Company Accounting Oversight Board (PCAOB) standards.