New compilation and review report requirements issued

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New compilation and review report requirements issued

The AICPA Accounting and Review Services Committee recently issued a new standard containing revised compilation and review reporting requirements.

The requirements are contained in Statement on Standards for Accounting and Review Services (SSARS) No. 24, Omnibus Statement on Standards for Accounting and Review Services — 2018.

Most significantly, SSARS No. 24 creates new ARC Section 100 in the ­AICPA Professional Standards to provide requirements and guidance for an accountant engaged to perform a compilation or review when:

In addition, SSARS No. 24 amends ARC Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, and ARC Section 90, Review of Financial Statements. These changes harmonize the requirements and guidance regarding the accountant’s consideration of going concern in a review of financial statements with the corresponding requirements and guidance in AUC Section 930, Interim Financial Information. The changes also will preclude an accountant from referencing, in an accountant’s review report, the review or audit report of other accountants if the accountant’s report includes an alert that restricts the use of such report.

These provisions take effect for compilations and reviews of financial statements for periods ending on or after June 15, 2019. Early application is permitted.

An additional amendment in SSARS No. 24 takes effect upon issuance. The amendment of Paragraph .39 of ARC Section 90 makes the requirements regarding the contents of the accountant’s review report consistent with the illustrative examples in Exhibit C of ARC Section 90. Practitioners who have been reporting in accordance with the illustrative reports provided in the exhibit to ARC Section 90 or the illustrative accountant’s review reports in Paragraph 1.239 of the AICPA guide Preparation, Compilation, and Review Engagements will not need to update their report templates. This technical correction brings the requirements in line with the report but does not change the report illustrations.

If practitioners have not been reporting in accordance with the illustrative reports, they may need to update their report templates.

Research & References of New compilation and review report requirements issued|A&C Accounting And Tax Services
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