Roxanne, this is an item of some debate and may be different from one CPA to another. Here is a list of what I would normally ask for.

1. The statements themselves
2. Summary memos
3. Adjusted trail balance

To that list I could add the following:

1. Letter of rep
2. GAAP Disclosure checklist

My desire to get these last items would depend entirely on what the statements contain.  The purpose of the review is to ensure that the issuing CPA did not make decisions on reporting or disclosure that could have been influenced by the relationship or that they had taken positions that would otherwise not be approved by the client. (I guess…?)

The truth is this – for most multifamily audits there are so few items of judgment in either reporting or disclosure that the review would seldom highlight any real choices made by the auditor that would have been made differently had the client prepared them and the CPA audited. The main issues typically revolve around surplus cash calculations and distributions. These areas are not places where the CPA would be found giving the client too many freebies on compliance.

Here is the specific guidance from the Yellowbook.

3.94 Factors that are relevant in evaluating the significance of any threats created by providing services as discussed in paragraph 3.89 include

1. the extent to which the outcome of the service could have a material effect on the financial statements,

2. the degree of subjectivity involved in determining the appropriate amounts or treatment for those matters reflected in the financial statements, and

1. the extent of the audited entity’s involvement in determining significant matters of judgment.

That is the basis for the material I would be looking at. Based on the above, I might say this:

To assist me in the review of the financial statements that I prepared as a non-audit service.  The purpose of this review is provide and additional safeguard to reduce the risk impairment.  IN particular, I am requesting that you determine the following:

1. Determine that the financial statements and related notes were prepared in a proper manner and were not impacted by my relationship as the auditor.
2. Determine that any areas with significant subjectivity were presented appropriately.
3. Areas which were affected by significant judgments were presented appropriately.

I think that is pretty simple.