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Compilation of Pro Forma Financial Information – SSARS No. 14

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Description

A compilation of pro forma financial information is limited to presenting financial information that is the representation of management (owners) without undertaking to express any assurance on that information.

The objective of pro forma financial information is to show what the significant effects on historical financial information might have been had a consummated or proposed transaction (or event) occurred at an earlier date. Pro forma financial information is commonly used to show the effects of transactions such as the following:

  • Business combination
  • Change in capitalization
  • Disposition of a significant portion of the business
  • Change in the form of business organization or status as an autonomous entity
  • Proposed sale of securities and the application of the proceeds

Nothing in this Statement is intended to preclude an accountant from preparing or assisting in the preparation of pro forma financial information and submitting such pro forma financial information to the client without the issuance of a compilation report, unless the accountant has been engaged to compile such pro forma financial information.

Table of Contents

  • Acknowledgments
  • About the Author
  • Introduction
  • Relationship to the Authoritative Standard
  • Chapter 1: Roles and Responsibilities of Management and the Auditor
    • Background of Auditing Standard No. 2
      • Overview of Sarbanes-Oxley Section 404
      • Definition of Internal Control and the COSO Framework
    • Your Responsibilities in an Audit of Internal Control
      • The Objective of an Audit of Internal Control
      • Auditor's Responsibilities Relating to Management's Quarterly Reporting of Internal Control Changes
      • Integrating the Audit of Internal Control With the Financial Statement Audit
    • Management's Responsibilities in an Audit of Internal Control
      • Management's Assessment Process
      • Management's Representations
    • Key Considerations in the Auditor-Management Relationship
      • Using the Work of Others
      • Providing Advice to Audit Clients
      • Auditor Independence Issues
    • References for Additional Guidance
      • American Institute of Certified Public Accountants
      • Governmental Accounting Standards Board
      • Government Accountability Office
      • Government Finance Officers Association
    • Summary
  • Chapter 2: Audit Planning and the Scope of the Engagement
    • Planning Considerations
      • The Entity and Its Business Environment
    • Evaluating Management's Assessment Process
      • Controls Over the Selection and Application of Accounting Policies
      • Antifraud Programs and Controls
      • IT General Controls
      • Controls Related to Accounting Estimates
      • Documentation of Internal Control
      • COSO Control Components
    • Obtaining an Understanding of Internal Control
      • Company-Level Controls
      • Evaluating Audit Committee Oversight
      • Identifying Significant Accounts and Relevant Assertions
      • Significant Processes and Major Classes of Transactions
      • Period-End Financial Reporting
    • Other Engagement Scope Considerations
      • Use of Service Organizations
      • Multiple Location/Multiple Business Unit Entities
    • Summary
  • Chapter 3: Internal Control Testing
    • Testing the Control Environment and Other Company-Level Controls
      • Control Procedures vs. Control Objectives
      • Determining the Controls to Test
    • Testing and Evaluating Design Effectiveness
      • Walkthroughs
    • Testing and Evaluating Operating Effectiveness
      • Nature of Tests
      • Timing of Tests
      • Extent of Tests
    • Evaluating Deficiencies
    • Summary
  • Chapter 4: Evaluation, Reporting, Communication, and Documentation
    • Forming an Opinion on Internal Control Effectiveness
      • Understanding Key Definitions
      • Evaluating Internal Control Deficiencies
    • The Auditor's Report
      • The Unqualified Opinion
    • Report Modifications
      • Additional Guidance
    • Scope Limitation
    • Required Communications
    • Documentation Requirements
    • Summary
  • Appendix A: Examples of Using the Work of Others
  • Appendix B: Safeguarding of Assets
  • Appendix C: Management Antifraud Programs and Controls
  • Appendix D: Illustrative Inquiries for Updating Walkthrough Procedures
  • Appendix E: Sampling in Compliance Tests of Internal Control
  • Appendix F: Examples of Extent-of-Testing Decisions
  • Appendix G: Examples of Significant Deficiencies and Material Weaknesses
  • Appendix H: Illustrative Reports on Internal Control Over Financial Reporting

Excerpts

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Paperback 2005
Product# 060652
Availability:In Stock
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