The AICPA Accounting & Review Services Committee released new standards for accounting and review services, titled SSARS No. 21, Statement on Standards for Accounting and Review Services: Clarification and Recodification.
Most of the changes will affect the firms which prepare financial statements and provide preparation, review and compilations services. However, financial executives will note several changes, including:
- Preparation Services: On the financial statements, a legend will now be included stating that no assurance is being provided—either on every page of the financial statements or in a disclaimer report.
- Compilations: The look of the report letter will change and be shortened to one paragraph with no headings. This change was made so that you may easily determine the difference between a compilation report and either a review or an audit report.
- Reviews: For review engagements, new wording has been added that makes it clear that the review may now be applied to historical financial information other than historical financial statements. In addition, the report letter has been reformatted and includes new headings.
To view more detailed information about SSARS No. 21, click here.
Readers should not act upon information presented without individual professional consultation.
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