Review, Compilation and Preparation
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.
SSARS No. 24 to be issued
Statement on Standards for Accounting and Review Services (SSARS) No. 24, Omnibus Statement on Standards for Accounting and Review Services—2018 will be issued in May 2018. Although the ARSC approved the issuance of SSARS No. 24 in January 2018, its issuance was delated until May in an effort to decrease the impact on practitioners during busy season.
Of most significance is that the SSARS will create a new AR-C section 100 in AICPA Professional Standards to provide requirements and guidance for an accountant who is engaged to perform a compilation or review when (a) the financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country or (b) the compilation or review is to be performed in accordance with both SSARSs and another set of compilation or review standards.
SSARS No. 24 will also amend AR-C section 60, General Principles for Engagements Performed in Accordance With Statements on Accounting and Review Services, and AR-C section 90, Review of Financial Statements, to harmonize the requirements and guidance regarding the accountant’s consideration of going concern in a review of financial statements with the corresponding requirements and guidance in AU-C section 930, Interim Financial Information, and will preclude an accountant from referencing, in an accountant’s review report, the review or audit report of other accountants if such accountant’s report includes an alert that restricts the use of such report.
Practitioners should be aware that SSARS No. 24 will amend paragraph .39 of AR-C section 90 to make the requirements regarding the contents of the accountant’s review report consistent with the illustrative examples in exhibit C of AR-C section 90. This amendment will be effective upon the issuance of SSARS No 24. Practitioners who have been reporting in accordance with the illustrative reports provided in the exhibit to AR-C section 90 or the illustrative accountant’s review reports in paragraph 1.239 of the AICPA Guide, Preparation, Compilation, and Review Engagements will NOT need to update their report templates. This technical correction only brings the requirements in line with the report, it does not change the report illustrations. Practitioners who have not been reporting in accordance with the illustrative reports may need to update their report templates.
All other provisions of SSARS No. 24 become effective for compilations and reviews of financial statements for periods ending on or after June 15, 2019.
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.