List five things that are required of an auditor by SSARS for a compilation. The preparer of the statements must: (Select five that apply.)
1) Read the compiled financial statements and be alert for any obvious omissions or errors in arithmetic and generally accepted accounting principles.
2) Disclose in the report any omissions or departures from accounting standards of which the accountant is aware. This requirement does not apply to a compilation that omits substantially all disclosures.
3) Perform analytical procedures. The procedures are meant to identify relationships and individual items that appear to be unusual.
4) Establish an understanding with the client in a written engagement letter about the objectives of the nature of the engagement.
5) E. Know the client, the nature of its business transactions, accounting records and employees, and the basis, form, and content of the financial statements.
6) F. Possess knowledge of the accounting principles and practices of the client's industry.
7) G. Make inquiries of management to determine whether the financial statements are fairly presented, assuming that management does not intend to deceive the accountant.
8) H. Obtain a letter of representation from members of management who are knowledgeable about financial matters.