1. Module A1 Other Public Accounting Services ACCT 4080

2. Module A2 1. Assurance Services Risk assessment Business performance measurement Information systems reliability Electronic commerce Third party reimbursement maximization XBRL reporting Customer satisfaction surveys ACCT 4080

3. Module A3 2. Compilation and Review Performed by an “accountant” Levels of assurance Audit positive assurance (reasonable assurance) Review limited assurance (moderate) (negative) Compilation (independence not required) no assurance (Disclaimer of Opinion) Preparation of Financial Statements (independence not required) no assurance and no report Applicable standards SSARSs (AR) SSARS No. 21 – new clarified standards became effective in late December 2015 ACCT 4080

4. Module A4 2. Compilation & Review (continued) Preparation of financial statements Objective prepare financial statements pursuant to a specified financial reporting framework (FRF) no report issued Requirements if accountant is not satisfied client understands and can abide by preconditions for accepting engagement, accountant should discuss with management - if changes cannot be made to satisfy the accountant, the accountant should not accept the engagement engagement letter required accountant should obtain understanding of the FRF and significant accounting policies intended to be used in the preparation of f/s accountant should prepare f/s using the records, documents, explanations, and other information provided by management ACCT 4080

5. Module A5 2. Compilation & Review (continued) Preparation of financial statements Requirements management must accept responsibility for judgments accountant determines necessary to prepare f/s if accountant becomes aware that records, documents, explanations, or other information used in preparation of f/s are incomplete, inaccurate, or otherwise unsatisfactory, accountant should bring that to attention of management and request additional or corrected information if accountant prepares financial statements that contain a known departure from applicable FRF (including disclosures), accountant should disclose the material misstatement in the financial statements if accountant prepares f/s that omit substantially all disclosures required by the FRF, accountant should disclose such omission in f/s (unless omission was to mislead users) ACCT 4080

6. Module A6 2. Compilation & Review (continued) Compilation of financial statements A service, the objective of which is to apply accounting and financial reporting expertise to assist management in the presentation of financial statements and report in accordance with this section without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework ACCT 4080

7. Module A7 2. Compilation & Review (continued) To compile financial statements, the accountant: must obtain understanding of the applicable FRF and significant accounting policies used read f/s in light of the accountant’s understanding of FRF if becomes aware that the records, documents, explanations, or other information used in preparation of f/s are incomplete, inaccurate, or otherwise unsatisfactory, accountant should bring that to attention of management and request additional or corrected information ACCT 4080

8. Module A8 2. Compilation & Review (continued) To compile financial statements, the accountant: if becomes aware during the course of engagement that f/s do not adequately refer to applicable FRF or are misleading, accountant should propose appropriate revisions to management should withdraw from the engagement and inform management of the reasons if accountant is unable to complete the engagement because management has failed to provide records, documents, explanations, or other information, or management does not make appropriate revisions proposed by accountant or does not disclose such departures in f/s, and accountant determines to not disclose such departures in the accountant’s compilation report ACCT 4080

9. Module A9 2. Compilation & Review (continued) Okay if not independent add statement as last paragraph in report Okay if financial statements omit disclosures as long as not done to mislead users report must include statement that client elected to omit disclosures if had been included disclosures might have influenced users f/s not intended for those who are not informed about such matters Must issue report ACCT 4080

10. Accountant’s Compilation Report Management is responsible for the accompanying financial statements of XYZ Company, which comprise the balance sheets as of December 31, 20X2 and 20X1 and the related statements of income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. I (We) have performed compilation engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. I (We) did not audit or review the financial statements nor was (were) I (we) required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, I (we) do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. ACCT 4080Module A10

11. Module A11 2. Compilation & Review (continued) Review of financial statements A service, the objective of which is to obtain limited assurance as a basis for reporting whether the accountant is aware of any material modifications that should be made to f/s for them to be in accordance with the applicable FRF, primarily through performance of inquiry and analytical procedures ACCT 4080

12. Module A12 2. Compilation & Review (continued) To review financial statements, the accountant: must be independent should not accept engagement if management imposes a limitation on the scope of the accountant’s work must obtain the agreement that management acknowledges its responsibility for preconditions must obtain written engagement letter ACCT 4080

13. Module A13 2. Compilation & Review (continued) To review financial statements, the accountant: should obtain understanding of the client’s industry and business but no evaluation of internal control knowledge of business must include knowledge of accounting principles and practices should apply analytical procedures should include comparing f/s to prior year comparing amounts and ratios to expectations developed by accountant comparing disaggregated revenue data investigate fluctuations or relationships that are inconsistent with other information ACCT 4080

14. Module A14 2. Compilation & Review (continued) To review financial statements, the accountant: should inquire of management inquires include: are f/s in accordance with FRF, any unusual or complex situations, significant transactions during period, status of uncorrected misstatements from last year, subsequent events, any knowledge of fraud, any noncompliance with laws, significant journal entries, any related party transactions, any pending litigation read the f/s should reconcile f/s to underlying accounting records should obtain written management representations ACCT 4080

15. Module A15 2. Compilation & Review (continued) To review financial statements, the accountant: if becomes aware that the records, documents, explanations, or other information used in preparation of f/s are incomplete, inaccurate, or otherwise unsatisfactory, accountant should bring that to attention of management and request additional or corrected information if believe f/s are materially misstated must perform additional procedures f/s must contain all disclosures ACCT 4080

16. I (We) have reviewed the accompanying financial statements of XYZ Company, which comprise the balance sheets as of December 31, 20X2 and 20X1, and the related statements of income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management’s (owners’) financial data and making inquiries of company management (owners). A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, I (we) do not express such an opinion. Management’s Responsibility for the Financial Statements Management (Owners) is (are) responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error. Accountant’s Responsibility My (Our) responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require me (us) to perform procedures to obtain limited assurance as a basis for reporting whether I am (we are) aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. I (We) believe that the results of my (our) procedures provide a reasonable basis for my (our) conclusion. Accountant’s Conclusion Based on my (our) reviews, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America. ACCT 4080Module A16 Independent Accountant’s Review Report

17. Module A17 3.Review of Interim Fin Stmts Review of interim financial statements Required for issuers by the SEC Reviews of interim statements follow the SASs (AU-C § 930), not SSARSs Auditor can only perform review if have audited latest financial statements or are in process of auditing latest fin stmts ACCT 4080

18. Module A18 4. Attestation Engagements Definition of attest engagement Report on the subject matter, or an assertion about the subject matter, that is the responsibility of another party Performed by a “practitioner” Types of services examinations reviews agreed-upon procedures ACCT 4080

19. Module A19 4. Attestation Engagements Levels of assurance examination similar to an audit high level of assurance (reasonable assurance) review limited (moderate) level of assurance not allowed on certain engagements agreed upon procedures assurance depends on procedures performed Applicable standards SSAEs (AT) ACCT 4080

20. Module A20 4. Attestation Engagements Types of attestation subject matter Agreed Upon Procedures Engagements (AT 201) scope less than audit report – no opinion or negative assurance (list procedures and findings) limited use report Financial Forecasts and Projections (AT 301) definitions limited use reports (except some forecasts can be general use report) Reporting on Pro Forma Financial Information (AT 401) definitions limited use reports ACCT 4080

21. Module A21 4. Attestation Engagements Types of attestation subject matter Reporting on an Entity’s Internal Control over Financial Reporting (AT 501) no reviews mostly same as PCAOB standards Compliance Attestation (AT 601) no reviews Management’s Discussion and Analysis (AT 701) Service Organizations (AT 801) SOC 1, SOC 2 (security), SOC 3 (trust services) Type 1 and Type 2 reports ACCT 4080

22. Module A22 5. Special Reports Follow SASs (auditing standards) Special Purpose Framework Statements (SPF), AU-C 800 previously called OCBOA statements regulatory basis tax basis cash basis modified cash basis Specific elements, accounts, or items in a financial statement, AU-C 805 no piecemeal reports Reporting on application of accounting principles (opinion shopping), AU-C 915 ACCT 4080

23. Module A23 Review Questions for Discussion A.3 A.5 A.6 A.7 A.9 A.13 A.12 ACCT 4080