Table of Contents
Overview of SSARS No. 257
| Effective Date | 7 |
| Objective | 7 |
| Background | 7 |
Overview of Changes Made By SSARS No. 2511
AR-C Section 60- General Principles for SSARSs12
SSARS No. 25 Changes to AR-C 60- General Principles13
SSARS No. 25 Changes to AR-C 70- Preparation of Financial Statements15
| REVIEW QUESTIONS | 34 |
| SUGGESTED SOLUTIONS | 36 |
SSARS No. 25 Changes to AR-C 80- Compilation Engagements39
| REVIEW QUESTIONS | 42 |
| SUGGESTED SOLUTIONS | 43 |
SSARS No. 25 Changes to AR-C 90: Review of Financial Statements44
| CHANGE 1: New Definitions- Review Engagements | 45 |
| CHANGE 2: Materiality in a Review Engagement | 45 |
| CHANGE 3: Inquiries of Management | 49 |
| CHANGE 4: Miscellaneous Review Procedures | 53 |
| CHANGE 5: Additional Procedures When the Accountant Becomes Aware That the Financial Statements May Be Materially Misstated | 55 |
| CHANGE 6: Written Representations in a Review Engagement | 58 |
| REVIEW QUESTIONS | 65 |
| SUGGESTED SOLUTIONS | 66 |
| CHANGE 7: Modifications to Review Engagement Reporting | 67 |
| CHANGE 8: Going Concern in a Review Engagement | 81 |
| CHANGE 9: Expanded Documentation in a Review Engagement | 95 |
| REVIEW QUESTIONS | 97 |
| SUGGESTED SOLUTIONS | 99 |
Index102
Glossary103
Course Details
Author: Steven C. Fustolo, CPA
Mr. Fustolo is a partner with the Boston CPA firm of James J. Fox & Company and Director of the National Tax Institute, Inc. He is a frequent lecturer and author of numerous tax and accounting issues affecting closely held businesses. An AICPA author, Mr. Fustolo’s articles are regularly featured in The Practical Accountant and other publications. He is the author of Practice Issues: Compilation and Review, Accounting and Auditing Reference Guide, Everything You Never Wanted to Know About GAAP, Enron: Fraud, Deception and the Aftermath, FASB Review for Industry, and FASB, SSARS and SAS Update and Review and numerous other books and manuals that have been published by Practitioners Publishing Company (PPC) and Commerce Clearing House (CCH). He is the recipient of several Outstanding Discussion Leader awards from many professional organizations including the New York and Florida Societies of CPAs. Mr. Fustolo’s course entitled FASB, SSARS and SAS Update and Review continues to receive accolades and is regarded as one of the top live CPE programs in the country today with ratings that average 4.91 on a scale of 5.0. He speaks regularly for professional groups including being a guest lecturer at the AICPA Advanced Accounting and Auditing Technical Symposium. Mr. Fustolo is the recipient of the Elijah Watts Sells Award (AICPA) and Silver Medal (Massachusetts) for scores received on the CPA Examination.
Publication/Revision Date: 1/21/2026
Course Exam Questions (online): 20 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF only or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify engagement types that are (and are not) authorized under the SSARSs
- Recognize a precondition for an accountant to accept a SSARS engagement
- Identify what is required for an accountant to perform a preparation engagement
- Recall whether the preparation of financial statements standard is an attest or nonattest service
- Recognize whether an accountant and a client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70
- Identify whether a report is required in a preparation of financial statements engagement
- Recognize what the reporting requirements are, if any, when a "no assurance" legend is omitted from prepared financial statements under the AR-C 70 standards
- Identify where to disclose GAAP departures in a preparation of financial statements engagement
- Recognize actions an accountant should take under SSARS No. 25 when a compilation is performed on the contractual basis of accounting
- Identify factors that should consider in determining materiality in a review engagement
- Identify the date as of which management representations should be made in a management representation letter for a review engagement
- Recognize a change that SSARS No. 25 makes to the accountant's review report
- Recall language that SSARS No. 25 requires to be included in a review report on the contractual basis of accounting
- Identify the term that GAAP uses for management's assessment of an entity's going concern
- Recognize the reporting requirements for going concern in a review engagement
- Recall some of the items that should be documented in a review engagement
