A new standard issued by the AICPA’s Accounting and Review Services Committee (ARSC) expands the subject matter to which the Statements on Standards for Accounting and Review Services (SSARSs) apply.
Statements on Standards for Accounting and Review Services are issued by ARSC, the senior technical committee of the AICPA designated to issue pronouncements in connection with the unaudited financial statements or other unaudited financial information of an entity that is not required to file financial statements with a regulatory agency in connection with the sale or trading of its securities in a public market.
SSARS No. 23 will 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 in 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. Those amendments are effective for prospective financial information prepared on or after May 1, 2017, and for compilation reports dated on or after May 1, 2017, respectively.