Flash update on SSARS #21

The new statement that overhauls the SSARS body of knowledge and opens up a new service called preparation was released on October 23, 2014.

Update – See also:

• Effective date of SSARS #21 and ideas on how to use the early implementation option
• Newly approved SSARS will allow a new service, ‘preparation’. Will also require written & signed engagement letters.
• Sample compilation report under SSARS 21
• Sample accountant’s review report for SSARS 21
• New risk alerts for 2014/2015 are available
• Video overview of SSARS 21

From the 30,000 foot level, here are just a few changes:

• Preparation service can now be provided by CPAs – dig in and I think you will find it better than the old “SSARS 8” approach. Initial reaction by sole practitioners at the CalCPA A&A conference was not very positive. Check out the details and I think you will be quite pleased.
• Signed engagement letters now explicitly required for comps and reviews.
• Compilation report revised and condensed. Visually looks completely different from an audit or review report.
• Review report is revised. Visually looks a bit like audit report.
• Effective for fiscal years ending after 12/15/15, which translates into your clients with 12/31/15 financial statements.
• Early implementation allowed on an engagement-by-engagement basis.

If you have read this far in my post you really ought to check out Charles Hall’s article at CPA-Scribo for a fantastic summary:  SSARS 21 – The Lowdown.

For an overview, check out the Journal of Accountancy’s article, Standards revised for reviews, compilations, engagements to prepare financial statements.