Section 4: 10–20%A17
Reviews, Compilations, and Preparation Engagements
Exam Insight
The CPA exam tests the differences between reviews, compilations, and preparation engagements in detail. Candidates must know the assurance level, independence requirements, procedures, and reporting for each. These are heavily tested because candidates frequently confuse the three.
What AICPA Wants You to Know
- 1Compare the procedures and reporting for reviews, compilations, and preparations
- 2Apply SSARS requirements to each engagement type
- 3Determine independence requirements for each engagement
- 4Identify the required report elements for reviews and compilations
- 5Recognize when a compilation report must disclose lack of independence