Apycom Java Applets
  Apycom Java Applets
 

CPCAF
- Report and LOC example

System Reviews
Reports:
- Report templates

LOC Findings:
- Independence
- Acceptance / Continuance
- Personnel Management
- Engagement Performance
- Monitoring  

Engagement Review
Reports:
- Report templates

LOC Findings:
- Modifying
- Non-Modifying  

Report Review
 -Report examples

LOR Samples
 - System reviews
 - Engagement reviews

Updated 2/13/2005

Sample Non-Modifying LOC Findings: Engagement Reviews

offloc20
Back to Engagement Non-modifying Findings Index

Minor report wording deficiencies

Finding - Our review also identified instances in the engagements selected for review where the firm's compilation reports did not contain all reporting elements required by professional standards. Specifically, the reports did not [refer to Statements on Standards for Accounting and Review Services] [refer to both periods covered by the financial statements] [indicate the degree of responsibility taken for supplementary information].

Recommendation - We recommend that the firm review the current requirements for reporting on financial statements and revise the standard reports used by the firm to conform with these requirements. In addition, the firm should revise its reports to conform with professional standards governing reporting on comparative periods and supplemental data presented with the basic financial statements.

offloc21
Back to Engagement Non-modifying Findings Index

Supplemental information responsibility not reported

Finding - During our review of compiled financial statements prepared by the firm, we noted that the firm did not indicate the level of responsibility it was taking for supplemental data presented with the basic financial statements.

Recommendation - The firm should revise the standard reports used by the firm to conform with professional standards governing reporting on supplemental data presented with basic financial statements.

offloc22
Back to Engagement Non-modifying Findings Index

Inappropriate financial statement titles used for OCBOA financial statements

Finding - We noted that computer-generated compiled financial statements prepared on a basis of accounting other than generally accepted accounting principles (GAAP) were properly reported on, but they used titles normally associated with a GAAP presentation.

Recommendation - The firm should review the professional standards governing the titles to be used when financial statements are prepared on a comprehensive basis of accounting other than GAAP and make sure that the software used by the firm is adjusted to conform with these standards. Until the software is revised, the firm should manually prepare the compiled financial statements in accordance with professional standards.

offloc23
Back to Engagement Non-modifying Findings Index

Statement of cash flows presented for only one period

Finding - In one of the compilation engagements reviewed, we noted that the accountant's report did not disclose that a statement of cash flows had been omitted for one of the periods in financial statements that presented financial position and comparative results of operations.

Recommendation - We recommend that the firm review, with other accounting personnel in the firm, the requirements for presenting statements of cash flows when comparative results of operations are presented in the basic financial statements. In addition, this matter should be stressed during the engagement review of financial statements compiled by the firm.

offloc24
Back to Engagement Non-modifying Findings Index

Report reference to OCBOA is omitted

Finding - We noted that the accountant's reports for compiled financial statements, prepared on the [cash basis] [income tax basis] of accounting and omitting substantially all disclosures, did indicate the basis of accounting, but did not include the companion disclosure that "the [cash] [income tax] basis of accounting is a comprehensive basis of accounting other than generally accepted accounting principles," as required by Statements of Standards for Accounting and Review Services.

Recommendation - The firm should review its standard accountant's reports for engagements to compile financial statements prepared on an other comprehensive basis of accounting for which substantially all disclosure are omitted. The reports should then be modified, as necessary, to include the disclosure that the basis of accounting is a comprehensive basis of accounting other than generally accepted accounting principles.

offloc25
Back to Engagement Non-modifying Findings Index

Reference to SSARS is not included in report

Finding - Our review also identified instances where the firm's compilation and review reports did not contain one of the reporting elements required by professional standards. Specifically, the reports did not include a reference to Statements on Standards for Accounting and Review Services.

Recommendation - We recommend that the firm review the current requirements for reporting on financial statements and revise the standard reports used by the firm to add this reference to the professional standards applicable to compilation and review engagements.

offloc26
Back to Engagement Non-modifying Findings Index

Minor disclosure matters

Finding - During our review, we identified several areas in which the firm should consider the need for additional financial statement disclosures in the financial statements in the engagements submitted for review. Specifically, the firm should evaluate the need for additional disclosures in the areas of [list the specific deficiencies].

Recommendation - We recommend that the firm establish a means of ensuring that all applicable accounting pronouncements are considered in the firm's accounting engagements. One way might be to attend a continuing education course that covers recent accounting pronouncements. Another way, although not required by professional standards, might be the adoption of a disclosure checklist on accounting engagements. [In addition, the firm should review, with firm personnel, the proper way to answer questions and resolve issues that arise when completing the firm's disclosure checklist.]

offloc27
Back to Engagement Non-modifying Findings Index

Selected footnotes not labeled as "selected information"

Finding - The reports on compiled financial statements for the engagements selected for review indicated that the financial statements omitted substantially all disclosures required by [generally accepted accounting standards] [cash basis of accounting] [income tax basis of accounting]. However, selected footnotes accompanying the financial statements were not appropriately labeled.

Recommendation - We recommend that the firm review its compilation engagements that omit substantially all disclosures omitted and determine that any selected footnotes are labeled with the caption, "Selected Information - Substantially All Disclosures Required by Generally Accepted Accounting Principles Are Omitted," as required by Statements on Standards for Accounting and Review Services.

Top

Peer Review Guide > Report and LOC Guide > Sample LOC Findings