Report Review

The objective of a report review is to enable the reviewed firm to improve the overall quality of its compilation engagements that omit substantially all disclosures.

The reviewer will request a summary of the number of the firm's compilation without disclosures clients. This should be classified into major industry categories for each proprietor, partner or shareholder of the firm who is responsible for the issuance of the compilation reports.

At least two engagements will be selected for review, unless the firm only performs one engagement. The selection should include one engagement for each partner of the firm responsible for issuing the compilation report. The reviewer will select the financial statements and accountant's report for review. The firm should send this information to the reviewer within 30 days of the request, masking the client identity to maintain confidentiality if they wish.

The reviewer will read the financial statements submitted by the reviewed firm along with the accountant's compilation report, the background information and representations provided by the reviewed firm. The reviewer may have questions about the selected engagements while reviewing them. It is the firm's responsibility to respond promptly to all questions raised in the review whether those questions are raised orally or in writing.

The reviewer will provide a report that lists comments and recommendations based on whether the financial statements and the related accountant's reports appear to conform with the requirements of the professional standards in all material respects. The comments and recommendations should be presented in a way that allows the firm to evaluate what appropriate actions should be taken.

There is no separate letter of comments for a report review and the firm is not required to write a letter of response. The firm is only required to sign the reviewer's report indicating that they have read the comments and recommendations and agree to correct the matters that were included as comments. The firm should submit a signed copy of the report to the VSCPA within 30 days of the report issuance or by the due date, whichever is earlier.