What is required for a compilation engagement or a review engagement?
1) Obtain a written engagement letter.
2) Understand the client's industry and the nature of the client's business.
3) Read the financial statements.
4) Design and perform analytical procedures.
5) Make inquiries of client management.
6) Perform tests of controls.
7) Assess fraud risk.
8) Obtain a letter of representation from management.
9) Prepare documentation in sufficient detail to provide a clear understanding of the work performed.
10) Issue a report that contains limited assurance about whether the accountant is aware of the need for material modification to the financial statements.