Engagements and standards
The SSARS Playbook
For compilations, preparations, and reviews, independence, legends, and reports each follow a fixed rule.
How the exam words it
- -The stem is a nonissuer compilation, preparation, or review under SSARS.
- -It asks whether independence is required and what must be disclosed.
- -It asks what legend, report, or representation letter the engagement requires.
- -Management asks to omit disclosures or a statement, or a conflict of interest surfaces.
The playbook
- 1Independence is required for a review, not for a compilation or preparation. A compilation discloses a lack of independence but never the reason.
- 2Preparation puts a 'no assurance' legend on each page and issues no report, a compilation issues a report, a review issues a report with limited assurance.
- 3Omissions are allowed only if the statements are not misleading, and impaired independence still bars a review.
The trap
Disclosing the reason for a lack of independence in a compilation. You disclose that you are not independent, never why.
How the exam varies it
The same pattern, re-skinned along these axes:
Compilation versus preparation versus reviewIndependence, legend, report wording, or omitted disclosuresWhether the statements would be misleading
Drill this pattern
8 questions of The SSARS Playbook from across the AUD topics. Clear it by getting 5 right with a streak of 3.