Major changes to Review and Compilation Reports from SSARS 19
Remember that SSARS 19 makes a lot of changes to the review and compilation procedures. In terms of the reports, the entire report is changing – the wording is completely different.
Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:
- Flash update on SSARS #21
- 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
- Video overview of SSARS 21
- New risk alerts for 2014/2015 are available
A report title is required (Accountant’s Compilation Report / Independent Accountant’s Review Report). Also, will be required to list an addressee.
One more complication to keep in mind for work in 2011. For a season of time, we could be in the position of preparing some reports with the new wording (since they are for 12-31-10 or later report dates) and other reports have to be drafted with the old wording (since they are for report dates earlier in the year).
Most people may consider the biggest change is allowing the accountant to explain the reason for a lack of independence on a compilation.
Lots of other changes to keep in mind as well. If you haven’t taken a look at SSARS 19 yet, it might be good to start browsing it. The AICPA has a summary of the document.
Update: Samples of new reports, tailored for non-profit organizations: