Preparation vs. Compilation: What Is It? (Currently Unavailable)

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, SSARS 24, and SSARS 25. 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: February 2022

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

  • 1.295 Nonattest Services
  • Other FAQs That Apply
  • SSARS 21 Statement On Standards for Accounting and Review Services - Clarification and Recodification
  • 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
  • SSARS 24
  • The Changes to SSARS in SSARS 25
  • SSARS 25, AR-C Section 70, February 2020
  • SSARS 25 AR-C Section 80, Compilation Engagements

Learning Objectives

  • Recognize and apply recent SSARS developments
  • Differentiate preparation services vs. compilation services
  • Describe SSARS 21-SSARS 25
  • Recognize the year the Accounting and Review Services Committee (ARSC) put forth Statements on Standards for Accounting and Review Services (SSARS 1)
  • Identify the SSARS 21 section that applies when the accountant is engaged to perform a compilation engagement
  • Identify the AR-C section that the accountant's compilation report on pro forma financial information should comply with
  • Identify the SSARS that clarifies that AR-C section 90 applies to reviews of all historical financial information, excluding pro forma financial information


Instructional Method

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

Program Prerequisites
General understanding of SSARS requirements.

Advance Preparation

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