Review, Compilation and Preparation

Review, Compilation and Preparation 


Accounting & Financial Reporting Industry Insights Audit & Attest Review, Compilation & Preparation Assurance & Advisory

If you perform compilation, review or financial statement preparation engagements, the information and resources here will help you stay informed of news, resources and information regarding Statements on Standards for Accounting and Review Services to help you perform your review, compilation, or financial statement preparation engagements, and be aware of common pitfalls in these engagements.

Hot Topics
ARSC Issues Omnibus SSARS to Amend AR-C Sections

The AICPA’s Accounting and Review Services Committee has issued Statement on Standards for Accounting and Review Services (SSARS) No. 23, Omnibus Statement on Standards for Accounting and Review Services—2016, to amend AR-C section 60, General Principles for Engagements Performed in Accordance With Statements on Accounting and Review Services; AR-C section 70, Preparation of Financial Statements; AR-C section 80, Compilation Engagements; and AR-C section 90, Review of Financial Statements (AICPA, Professional Standards). The most significant amendments result SSARSs being applicable to engagements performed on certain subject matter other than financial statements. Preparation of financial statements and compilation of prospective financial information are now covered by AR-C sections 70 and 80, respectively. SSARS No. 23 is effective upon issuance except for the amendments to AR-C sections 70 and 80 with respect to prospective financial information that are effective for prospective financial information prepared on or and after May 1, 2017, and for compilation reports on prospective financial information dated on or after May 1, 2017, respectively.

ARSC Issues Clarified Standard on Pro Forma Financial Information as Statement on Standards for Accounting and Review Services (SSARS) No. 22

Resulting from its Clarity Project, the AICPA’s Accounting and Review Services Committee has completed the clarity redrafting of its last pre-clarity AR section in AICPA Professional Standards and issued Statement on Standards for Accounting and Review Services (SSARS) No. 22, Compilation of Pro Forma Financial Information, to clarify AR section 120, Compilation of Pro Forma Financial Information (AICPA, Professional Standards). SSARS No. 22 supersedes SSARS No. 14 of the same title, as amended, and becomes effective for compilation reports on pro forma financial information dated on or after May 1, 2017.

Statement on Standards for Accounting and Review Services No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification

Statement on Standards for Accounting and Review Services No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification was issued in October 2014. SSARS No. 21 represents the AICPA’s Accounting and Review Services Committees efforts to clarify and revise the standards for reviews, compilations, and engagements to prepare financial statements. SSARS No. 21 includes significant revisions that affect the standards for accountants in public practice who prepare financial statements for their clients.

Learn more about SSARS No. 21, including AICPA resources available today, or access the Executive Summary.

For more information visit the AICPA's Accounting and Review Services Committee Clarity Project area.

Review Engagements

Objective: Obtain limited assurance as a basis for reporting whether the accountant is aware of any material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework, primarily through the performance of inquiry and analytical procedures.

Compilation Engagements

Objective: Apply accounting and financial reporting expertise to assist management in the presentation of financial statements and report in accordance with this standard without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework.

Preparation Engagements

Objective: Prepare financial statements pursuant to a specified financial reporting framework.

Accounting and Review Services Committee

The Accounting and Review Services Committee promulgates Statements on Standards for Accounting and Review Services (SSARS) and, as a part of its due process, releases Exposure Drafts of proposed SSARS. The AICPA also issues interpretive and other publications to assist practitioners in understanding and applying the standards.

Additional Resources
AICPA Guide Preparation, Compilation, and Review Engagements AICPA Alert Developments in Preparation, Compilation, and Review Engagements SSARS No. 21 Statements on Standards for Accounting and Review Services: Clarification and Recodification

 

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