Compilations, reviews and audits: the skills required relative to public confidence

Pressure is continuing from some quarters to drop the requirement that performance of review and compilation services be restricted to CPAs and other licensed accountants. In the mistaken notion that only limited skills are required for compilations and reviews, proponents seek to persuade legislato...

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Bibliographic Details
Published in:The CPA journal (1975) 1994-07, Vol.64 (7), p.42
Main Authors: Bailey, Larry P, Pendergast, Marilyn A
Format: Article
Language:English
Subjects:
Accountants
Accounting
Accounting policies
Audit engagements
Auditing standards
Audits
Comparative analysis
Compilation & review
CPAs
Financial statements
Inventory
Licenses
Practice
Professional standards
Review engagements
Services
Skills
Tax basis
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Summary:Pressure is continuing from some quarters to drop the requirement that performance of review and compilation services be restricted to CPAs and other licensed accountants. In the mistaken notion that only limited skills are required for compilations and reviews, proponents seek to persuade legislators to make this important and growing class of professional work available to a wider group who are neither adequately prepared nor subject to regulation. The myth that these services do not require the training equivalent to that of the CPA conducting an audit is dispelled. A discussion is presented of the numerous phases of these services where professional skills are vital requisites to both reviews and compilations, including: 1. level of assurance, 2. evidence and evaluative skills, 3. GAAP disclosure, 4. internal control understanding, 5. independence, 6. the going-concern assumption, and 7. peer review.
ISSN:0732-8435