For compilation reports, if the client fails to follow accounting standards, the accountant must include the same modifications in the compilation report that are used in the review report.

Question

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According to SSARS 21, if the accountant becomes aware of material departures from accounting standards, the accountant must modify the compilation report to include a reference to the material departure. This modification is similar to the modification that is made in a review report. Therefore, if the client fails to follow accounting standards, the accountant must include the same modifications in the compilation report that are used in the review report.

For Compilation Reports, If the Client Fails to Follow Accounting