Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Two new SSARS documents, #22 and #23

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Image courtesy of Adobe Stock.

Image courtesy of Adobe Stock.

There are two new SSARS pronouncements. Most likely they will not be a big deal for most accountants, but if you work in the comp or review arena, you need to know they exist and you really ought to have a vague idea what is in them.

First, a tip on staying out of trouble on nonattest services…

11/1 – Journal of Accountancy – Nonattest services quiz – A great six question quiz on nonatttest services. Take the quiz to find out how well you are doing on independence and documentation requirements. By the way, if you miss some questions you probably taking out some really serious risk in your audit practice that you didn’t even know about.

This is a great opportunity to find out what you don’t know, which can hurt you.

9/23 – Journal of Accountancy – ARSC complete clarity project with issuance of SSARS No. 22The new document, Compilation of Pro Forma Financial Information – clarifies compiling such information. It is effective for accountant’s reports dated on or after May 1, 2017.

10/25 – Journal of Accountancy – SSARS 23 expands application of preparation, compilation standards – In brief, the new document, Omnibus Statement on Standard for Accounting and Review Services-2016, expands section 70 on preparation to cover prospective financial information.

AR-C section 80 on compilations now covers prospective and pro-form a financial information.

The document also makes other changes.

11/15 – Charles Hall at CPA-Scribo – Parts of SSARS 23 are Effective Immediately: See What They Are Article points out that new wording in compilation and review reports for supplementary information is effective now.

Previously departures from the applicable financial reporting framework could be reported either in the notes or the company report. Article points out SSARS 23 requires the departure to be mentioned in the accountant report.

By the way, if you haven’t started using Evernote to file away articles like this for future research purposes, now would be a really good time to start.

Written by Jim Ulvog

November 18, 2016, 11:20 am at 11:20 am

Posted in Compilations & reviews

Tagged with ,

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