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Resources for SSARS No. 19

SSARS No. 19 includes the most significant changes since 1978. “The new standard makes important changes that should be welcomed and applauded by many smaller firm practitioners,” says Carol McNerney, chair of ARSC and a partner with the firm of SS&G Financial Services in Akron, Ohio. The final standard became effective for periods ending on or after December 15, 2010.

Significant changes to the SSARSs included the following:
Per Paragraph 2.21, “The accountant is not precluded from disclosing a description about the reason(s) that his or her independence is impaired.” It should be noted that SSARS No. 19 does not change the independence literature in any way—it just provides a reporting option for accountants performing compilation engagements. Other significant changes to SSARSs included the following:

The separation of compilation guidance from review guidance. A discussion of how the accountant obtains limited assurance through the performance of review procedures. The introduction of the term review evidence to the review literature. A discussion of tailoring the review procedures based on the accountant’s understanding of the client’s industry, knowledge of the client, and awareness of the risk that he or she may unknowingly fail to modify the accountant’s review report on financial statements that are materially misstated. A discussion of materiality in the context of a review engagement. A requirement that an accountant document the establishment of an understanding with management through a written communication (that is, an engagement letter) regarding the services to be performed. The establishment of enhanced documentation requirements for compilation and review engagements.	SSARS No. 19 Mike Glynn, Staff Liaison to the ARSC, discusses SSARS 19, the most significant changes since 1978 to the SSARS.

The AICPA offers implementation guidance and training on SSARS No. 19, including:

The separation of compilation guidance from review guidance.
A discussion of how the accountant obtains limited assurance through the performance of review procedures.
The introduction of the term review evidence to the review literature.
A discussion of tailoring the review procedures based on the accountant’s understanding of the client’s industry, knowledge of the client, and awareness of the risk that he or she may unknowingly fail to modify the accountant’s review report on financial statements that are materially misstated.
A discussion of materiality in the context of a review engagement.
A requirement that an accountant document the establishment of an understanding with management through a written communication (that is, an engagement letter) regarding the services to be performed.
The establishment of enhanced documentation requirements for compilation and review engagements.

SSARS No. 19

Mike Glynn, Staff Liaison to the ARSC, discusses SSARS 19, the most significant changes since 1978 to the SSARS.

The AICPA offers implementation guidance and training on SSARS No. 19, including:

Guidance
Compilation and Review Engagements Guide Compilation and Review Developments Risk Alert Personal Financial Statements Exhibit Companion to SSARS No. 19 Reporting on Compiled or Reviewed Financial Statements For Periods Ended on or After December 15, 2010 With Comparative Financial Statements For Periods Ended Before December 15, 2010 Sample Reports When Independence is Impaired TIS Paragraph .25, "Determining Whether Financial Statements Have Been Prepared by the Accountant", of Section 9150, Compilation and Review Engagements

Articles and Whitepapers
Significant Change to Compilation Reporting Requirements When Independence Is Impaired Understanding Internal Control and Internal Control Services Changes on Tap for Compilation and Review Standards

Tools and Toolkits
PCPS SSARS No. 19 Toolkit (including Implementation Checklist)

Learning
Compilation and Review Engagement Essentials Insights: SSARS 19 - The New Compilation and Review Standard Compilation, Review, and Accounting Services Update Performing Compilation and Review Engagements Compilation Engagements: Mastering the Fundamentals Review Engagements: Mastering the Fundamentals Managing Compilation, Review, and Accounting Services

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