A resource for year-end engagements--and beyond: AICPA Audit and Accounting Manual--2003.

• Position: American Institute of Certified Public Accountants

The Audit and Accounting Manual (AAM) is one of the most comprehensive guides available, taking you from start to finish on compilation, review, and audit engagements. Filled with practice aids, sample reports, correspondence, and checklists, the AAM also contains all of the AICPA's critical risk alerts for many different industries and an entire section addressing state and local government engagements. And what makes this book unique is its handy one-volume size.

Compilation and review

Practitioners performing compilation and review engagements will find the AAM ideal to use at clients' offices. In one book you can reference the essential guidance and practical tools you normally need.

The Compilation and Review section starts with an overview of the applicable standards and interpretations, including recent guidance. The Manual also addresses key planning and administration areas, including what to include in an engagement letter along with sample letters that can be tailored to fit your circumstances.

The Manual walks you through the steps involved in a traditional compilation and a management-use only compilation. It covers review procedures and offers sample management representation letters in connection with a review engagement. Of course, the AAM provides programs and checklists to help you successfully complete your compilation and review engagements.

Next, the Manual discusses the form and content of financial statements and then provides an entire section on reporting. The reporting section topics include reporting:

* When supplementary information is included.

* On financial statements that omit disclosures.

* On financial statements included in consulting engagements.

* When there is a scope limitation.

The reporting section then provides many report examples covering a variety of reporting situations.

The AAM also provides guidance on special situations that crop up when performing compilation and review services. One special area addressed is dealing with OCBOA (other comprehensive basis of accounting) financial statements. The Manual discusses OCBOA financial statements and gets into detail about cash-basis and tax- basis accounting.

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