Compilation and Review in the Red Zone 2022

Author: Pat Patterson

This course explains the varied and unusual details of Generally Accepted Accounting Principles (GAAP) and Special Purpose Financial Standards that impact the accounting, review, compilation, and preparation principles for privately held entities. Engagements during the Coronavirus Global Pandemic (COVID-19) and SSARS 25 are discussed for application to preparation, compilation, and review engagements. Special disclosures during the Pandemic are explored.

Publication Date: August 2022

Designed For
The course is designed for CPAs in public practice, professionals in business, industry, and other accounting professionals working in the accounting and financial statement preparation areas under the COVID-19 threats. In addition, the AICPA’s Code of Professional Conduct (as revised) is also important to understand as it relates to independence, documentation, and form and content of financial statements, if any.

Topics Covered

• What Is the Red Zone?
• Preparation vs. Compilation Overview
• Application and Other Explanatory Material
• The Changes to SSARS
• Revenue Recognition, Leases, Ethics, and Financial Instruments during a pandemic
• SSARS 26, Quality Management for an Engagement Conducted in Accordance With Statements on Standards for Accounting and Review Services, June 2022

Learning Objectives

• Describe major FASB accounting and ASB auditing standards that impact engagements under SSARSs
• Identify Statements on Standards for Accounting and Review Services (SSARS)
• Recognize what is included in the RED zone for SSARS
• Describe which term is used to suggest that a procedure is presumptively mandatory
• Recognize what should be included in writing for the accountant's compilation report

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
The participants should be familiar with the basics of accounting and Compilation Standards using GAAP, Other Special Purpose Financial Standards, and Ethics.

Advance Preparation
None