SSARS No. 25: Materiality in a Review of
Financial Statements and Adverse Conclusions

Course Description:
The purpose of this course is to inform the reader of the various changes made to the compilation and review codification by the issuance of SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions, include changes made to AR-C 60- General Principles, AR-C 70- Preparation of Financial Statements, AR-C 80- Compilation Engagements, and AR-C 90- Review of Financial Statements. Topics include expanding use of the disclaimer report in a preparation engagement, changes involving the reporting on the contractual basis of accounting, new requirements to define materiality in a review engagement, expanded inquiries and management representations in a review engagement, the new modified conclusion (qualified and adverse conclusion) reporting changes, guidance on going concern in a review engagement, and more. The course addresses the three types of engagements that can be performed under the SSARSs: a preparation of financial statements engagement, a compilation engagement, and a review engagement
Learning Objectives:
Upon successful completion of this course, participants will be able to:

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 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

Course Number:	SF2007
NASBA Field of Study:	Auditing
Level:	Overview
Author/Instructor:	Steven C. Fustolo
Publication Date:	January 2026
CPE Credits:	4
Program Prerequisites:	General understanding of compilation and review and auditing standards
Advanced Preparation:	None

Course Format: Online
Test Format: Online
CPE Credit: 4
Level: Overview
NASBA Field of Study: Auditing
Instructional Method: Self Study
Program Prerequisites: General understanding of compilation and review and auditing standards
Advanced Preparation: None

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Self Study