Assignment 4-3 Compilations and Reviews

Assignment 4-3 Compilations and Reviews - • Obtain an...

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Assignment 4-3 Compilations and Reviews Chapter 21 21-8. What type of knowledge must an accountant possess about the entity in order to perform a compilation engagement? The accounting principles and practices of the industry in which the entity operates. A general understanding of the client’s organization; its operating characteristics; and the nature of its assets, revenues, and expenses. An understanding of the accounting principles and practices trusted by the client. A review engagement? Obtaining knowledge of the accounting principles and practices of the industry in which the entity operates. Obtaining a general understanding of the entity’s organization, its operating characteristics, and the nature of its assets, liabilities, revenues, and expenses.
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Unformatted text preview: • Obtain an understanding of the accounting principles and practices used by the client in measuring, recognizing, recording, and disclosing all significant accounts and disclosures in the financial statements. • Asking the entity’s personnel about important matters. • Performing analytical procedures to identify relationships and individual items that appear to be unusual. • Reading the financial statements to determine if they conform to the applicable financial reporting framework. • Obtaining reports from other accountants, if any, who have audited or reviewed the financial statements or significant components. • Obtaining a representation letter from management....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 470 taught by Professor Kwong during the Spring '11 term at Franklin.

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