Preparation vs. Compilation: What Is It?

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

This course is about the new preparation, compilation, and review professional standards, which represent significant changes in authoritative professional standards like SSARS 21, SSARS 22, SSARS 23, and SSARS 24. Engagement Letters, Reports (or lack thereof), Disclosures, Documentation, and Ethical considerations from the newly Revised AICPA Code of Professional Conduct are explained, discussed, and examples are given for illustrations. Selected attest vs nonattest issues are dealt with. Selected Independence and Ethics 1.295 concepts are handled.

Publication Date: March 2019

Designed For
Professionals in public practice, industry, government, and education who deal with nonpublic entities and need a course in preparation, compilation, and review engagements and procedures.

Topics Covered

  • Background and History
  • SSARS 21 Statement on Standards for Accounting and Review Services- Clarification and Recodification
  • SSARS 21, Section 70 Preparation of Financial Statements
  • SSARS 21, Section 80 Compilation Engagements
  • FAQs Preparation vs Compilation
  • SSARS 22 Compilation of Pro Forma Financial Information
  • SSARS 23 Omnibus: Statement on Standards for Accounting and Review Services 2017
  • Other FAQs That Apply

Learning Objectives

  • Identify the changes in preparation, compilation, and review standards for SSARS 21, 22, 23, and 24
  • Differentiate between Preparation Services and Compilation Services
  • Identify the scope of SSARS 21 Section 70 applies to which engagement
  • Recognize examples of a service for Section 70
  • Differentiate correct statements with respect to preparation engagement
  • Identify what an accountant should do if during a preparation engagement, an accountant becomes aware that the financial statements contains a departure from the applicable accounting framework
  • Recognize which AR Section SSARS 22 revises by putting the requirements and guidance in clarity format
  • Identify changes made to AR-C Section 70 based on the issuance of SSARS 23
  • Differentiate whether an accountant has been engaged to prepare financial statements or merely assist in preparing financial statements
  • Identify what levels of assurance is provided


Instructional Method

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Basic understanding of preparation and compilation.

Advance Preparation

Registration Options
Regular Fee $49

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