Internal-use only questionnaire examined.At its May meeting, the accounting and review services committee (ARSC ARSC Arctic Region Supercomputing Center
ARSC Association for Recorded Sound Collections
ARSC Accounting and Review Services Committee
ARSC Aircraft Repair and Supply Center (USCG)
ARSC Arizona Remote Sensing Center ) discussed responses to a questionnaire it had sent to supporters of its proposed Statement on Standards for Accounting and Review Services (SSARS SSARS Statements on Standards for Accounting and Review Services ), Assembly of Financial Statements for Internal Use Only. This issue has long been contentious (see In My Opinion, JofA, Apr. 95, page 83-84, and Letters, Sept.95 and Dec. 95, pages 12 and 10, respectively), and no one is expecting a final statement any time soon. However, the questionnaire responses did help the committee focus on some practice problems and will figure in any future decision to revise and reexpose the exposure draft, issue some type of interpretation or amendment of SSARS or scrap the ED entirely.
"We realized a lot of the problems were educational," said ARSC chairwoman Wanda Lorenz. CPAs were often unsure about the standards, and ARSC acknowledged the need to address some issues in more detail. Lorenz cited the following concerns as needing particular attention:
* Many CPAs do not know there are options under existing standards that would allow them to provide timely and cost-effective compilation Compiling a program. See compiler. services to their clients, such as financial statements that omit o·mit
tr.v. o·mit·ted, o·mit·ting, o·mits
1. To fail to include or mention; leave out: omit a word.
a. To pass over; neglect.
b. substantially all disclosures and statements prepared using a comprehensive basis of accounting other than generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records.
Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting .
* Peer reviewers sometimes require more documentation than professional standards do. ARSC is addressing this in conjunction with the American Institute of CPAs practice monitoring division.
* Many practitioners are violating the spirit, although not the letter, of SSARS no. 1, Compilation and Review of Financial Statements, by creating computer-generated financial statements, but allowing clients to push the button that actually prints the statements. Clients, therefore, and not the CPAs, have "generated" the statements, and the CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. does not perform the required compilations. ARSC wants to clarify SSARS no. 1 to end this practice.
* There is confusion about the applicability of SSARS when CPAs serve as controllers for their clients; ARSC hopes to resolve this soon.
"We need to study our comment letters and questionnaire responses before we proceed with this ED," said Lorenz. "The questionnaire, with other considerations, may make the ED obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed,
2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. . But we need to have some sort of amendment to SSARS no. 1, particularly addressing the issue of submission. ARSC also is preparing a series of questions and answers to prevent misconceptions Misconceptions is an American sitcom television series for The WB Network for the 2005-2006 season that never aired. It features Jane Leeves, formerly of Frasier, and French Stewart, formerly of 3rd Rock From the Sun. about SSARS, which eventually may take the form of an amendment to SSARS no. 1."