AC410 Unit9 Discussion - What informaTon should the review...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Statement Reviews There are a variety of non-audit services that CPAs perform for companies. Understanding what these services entail helps to ensure you are in compliance for any type of client engagement. Melissa O’Neil, CPA, has been engaged by a non-public company, Caldwell, Inc., to review the financial statements of the most recently completed fiscal year. What sources should O’Neil consult in order to prepare for this review? To begin with O’Neil should have a complete understanding of the client’s business and financial reporting. Having this knowledge would help the auditor determine the extent of the procedures needed. What are the required procedures that O’Neil must perform? During a review engagement the accountants (1) perform analytical procedures, (2) make inquiries of management and others within the organization, (3) perform other procedures considered necessary, and (4) obtain representations from management relating to the financial statements (Whittington 738).
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: What informaTon should the review report contain? A review is not sufficient to enable the accountants to express an opinion on the fairness of the financial statements. Therefore, the accountants' report concludes with a statement that the accountants do not express such an opinion (Whittington 739). What should O’Neil do if she Fnds there was a material departure from GAAP? A modification of the report is required when the accountants become aware of a material departure from generally accepted accounting principles (or some other comprehensive basis of accounting). The departure is referred to in the report's fourth paragraph, similar to the following: With the exception of the matter described in the following paragraph, we are not aware of any material modifications (Whittington 739). Whittington, O. R., & Pany, K. (2014). Principles of auditing & other assurance services (19th ed.). New York, NY: McGraw-Hill....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern