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