Omission of Disclosures

Accountant ~ay compile financial statements of non public company when substantially all dis-
closures omitted

Omission must be indicated in report

Omission not intended to make financial statements misleading

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Focus on
Reporting - Module 4

Reviews

Accountants provide limited assurance regarding financial statements in a review

Accountant must be independent to perform review

Accountant performs inquiries & analytical procedures (APs)

Examples of inquiries & APs performed in a review include
Inquire about accounting principles
Inquire about procedures for recording, classifying, & summarizing information for finan-
cial statements

Identify unusual relationship & unusual items using APs

 Inquire about actions taken at meeting of shareholders, directors, or others that may af-
fect financial statements

Read financial statements to determine if they appear to conform with GAAP

Obtain reports from other accountants auditing or reviewing components of the financial
statements

Inquire of individuals responsible for financial & accounting matters

Accountant does not obtain understanding of internal control or assess control risk

Focus on
Reporting - Module 4
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