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Accounting and Review Services Committee issues new standards.

The AICPA's Accounting and Review Services Committee has issued Statement on Standards for Accounting and Review Services No. 12, Omnibus Statement on Standards for Accounting and Review Services--2005 (No. 060650CPA09). Statement on Standards for Accounting and Review Services No. 13, Compilation of Specified Elements, Accounts, or Items of a Financial Statement (No. 06065 ICPA09), and Statement on Standards for Accounting and Review Services No. 14. Compilation of Pro Forma Financial Information (No. 060652CPA09).

SSARS 12 amends SSARS No. 1 in various ways, including new requirements with respect to establishing an understanding with the client and communicating to management and others regarding fraud and illegal acts that may have occurred. It also amends SSARS No. 2 to provide guidance in circumstances where the successor accountant is engaged to report on a restatement adjustment with respect to prior-period financial statements that have been restated while indicating that a predecessor accountant reported on the financial statements of the prior period before restatement.

SSARS 13 expands SSARS to apply when an accountant is engaged to compile or issues a compilation report on one or more specified elements, accounts, or items of a financial statement.

SSARS 14 expands SSARS to apply when an accountant is engaged to compile or issues a compilation report on pro forma financial information.

To obtain copies of SSARS 12, 13 or 14. contact the AICPA Service Center (see page 6: price each: $19 member/$23.75 nonmember).

In addition to these new standards, the ARSC also has issued updated illustrative engagement letters for compilation of financial statements, compilation of financial statements not intended for third-party use, and review of financial statements. It also issued illustrative engagement letters for compilation of specified elements, accounts, or items of a financial statement and compilation of pro forma financial information. Each of the illustrative financial statements are available at www.aicpa.org/members/ div/auditstd/technic_arsc.asp.
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Publication:CPA Letter
Date:Sep 1, 2005
Words:314
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