Key CPA Exam Takeaways

High-Yield Review

• SSARS applies to preparation, compilation, and review engagements for nonissuers.
• Preparation engagements require no report and provide no assurance.
• Compilation engagements require a report but provide no assurance.
• Review engagements require analytical procedures, inquiries, a report, and provide limited assurance.
• Only review engagements require independence.
• Compilation engagements allow impaired independence if disclosed.
• Preparation engagements require an engagement letter but not independence.
• Reviews do not include confirmation, inspection, observation, or substantive testing.
• Management remains responsible for the financial statements in every SSARS engagement.

Preparation: no report. Compilation: report, no assurance. Review: report with limited assurance.