Three exposure drafts issued on SSARS.The AICPA's Accounting and Review Services Committee has issued three exposure drafts on statements on standards for accounting and review services. Currently, SSARS SSARS Statements on Standards for Accounting and Review Services provide guidance concerning the standards and procedures applicable to compilations and reviews of financial statements. By definition, presentations of specified elements, accounts or items of a financial statement, or pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma financial information, are not financial statements. The proposed statement, Compilation of Specified Elements, Accounts, or Items of a Financial Statement and Pro Forma Financial Information, will allow an accountant to compile To translate a program written in a high-level programming language into machine language. See compiler. financial statement elements, accounts or items of a financial statement or pro forma financial information in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SSARS. The proposed statement will not amend or revise the guidance in Chapter 4, "Reporting on Pro Forma Financial Information," of Statement on Standards for Attestation The act of attending the execution of a document and bearing witness to its authenticity, by signing one's name to it to affirm that it is genuine. The certification by a custodian of records that a copy of an original document is a true copy that is demonstrated by his or her Engagements No. 10, Attestation Standards The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. : Revision and Recodification (AICPA AICPA See American Institute of Certified Public Accountants (AICPA). , Professional Standards, vol. 1, AT sec. 401), which provides guidance to a practitioner engaged to issue or who does issue an examination or review report on pro forma financial information. Additionally, the proposed statement will not amend or revise the guidance in Statement on Auditing Standards No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623), as amended, which provides guidance when an independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. is requested to express an opinion on one or more specified elements, accounts or items of a financial statement. The proposed statement, if issued, would be effective for engagements to compile specified elements, accounts or items of a financial statement and pro forma financial information entered into after Dec. 15, 2005. Early application would be permitted. The proposed statement, Restricting the Use of an Accountant's Compilation or Review Report, will provide guidance to accountants on restricting the use of reports issued pursuant to SSARS by defining the terms general use and restricted use; describing the circumstances in which the use of an accountant's report should be restricted; and specifying the language to be used in accountants' reports that are restricted regarding use. If issued, the statement would be effective upon release. The proposed statement, Omnibus omnibus: see bus. Statement on Standards for Accounting and Review Services--2005, would amend SSARS No. 1, Compilation and Review of Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 100), to require accountants to communicate all instances that come to their attention where they have found indications that fraud may exist. It also would amend SSARS No. 2, Reporting on Comparative Financial Statements' (AICPA, Professional Standards, vol. 2, AR sec. 200), to allow for the successor accountant to compile or review a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. adjustment when prior period financial statements have been changed, and amend SSARS No. 1 to provide guidance regarding when an accountant should consider obtaining an updating representation letter from management. This proposed statement, if issued, would be effective for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2005. Early application would be permitted. The exposure drafts are available on the AICPA's Web site at www.aicpa.org/members/div/auditstd/draf ts.asp. Comments are due by June 10 via e-mail to mglynn@aicpa.org. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion