SSARS Resources, Statement on Standards, Compilation and Review

  Banking and Finance

The Accounting Review Services Committee issued Statement on Standards for Accounting and Review Services SSARS 21, SSARS 22, SSARS 23 and SSARS 24 Statement on Standards for Accounting and Review Services. SSARS clarifies and revises the standards for reviews, compilations and engagements to prepare financial statements. It also includes significant revisions that affect the standards for accountants in public practice who prepare financial statements for their clients.

What is the Difference Between SSARS 21, 22, 23 and 24?

SSARS 21 provides CPAs the opportunity to prepare financial statements without the burden of submitting a compilation report. 

The AICPA Accounting and Review Services Committee issued SSARS 22, Compilation of Pro Forma Financial Information. The standard takes effect for compilation reports on pro forma financial information dated on or after May 1, 2017.

SSARS 23, Omnibus Statements on Standards for Accounting and Review Services – 2016,5 was issued on Oct.

4 Sections of SSARS

Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, is intended to help accountants better understand their professional responsibilities when performing engagements in accordance with SSARSs.

Section 70, Preparation of Financial Statements, applies when the accountant is engaged to prepare financial statements but is not engaged to perform an audit, review or a compilation on those financial statements.

Section 80, Compilation Engagements, applies when the accountant is engaged to perform a compilation engagement.

Section 90, Review of Financial Statements, applies when the accountant is engaged to perform a review of financial statements.

The following standards have been superseded but are available for historical purposes only.

Original Standard No.

Title & Synopsis

Section in Professional Standards

Interpretations (if applicable)

SSARS No. 21

General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services This section includes the general principles for engagements performed in accordance with SSARSs.

AR-C sec. 60A

 
 

Preparation of Financial Statements
This section contains the requirements and guidance related to engagements to prepare financial statements.

AR-C sec. 70

 
 

Compilation Engagements
This section contains the requirements and guidance related to compilation engagements.

AR-C sec. 80

 
 

Review of Financial Statements This section contains the requirements and guidance related to review engagements and is essentially a clarity redraft of the review literature in SSARS No. 19, with few changes.

AR-C sec. 90A

AR-C sec. 9090

SSARS No. 22

Compilation of Pro Forma Financial Information
This section contains performance and reporting requirements and application guidance for accountants engaged to perform a compilation engagement on pro forma financial information.

AR-C sec. 120

 

SSARS No. 23

Omnibus Statement on Standards for Accounting and Review Services—2016
This standard contains amendments to revise applicability of SSARSs and to clarify and revise requirements throughout AR-C sections 60, 70, 80, and 90.

AR-C sec. 60

AR-C sec. 70

AR-C sec. 80

AR-C sec. 90

 

SSARS No. 24

Omnibus Statement on Standards for Accounting and Review Services—2018
This section addresses situations in which an accountant is engaged to perform a compilation or review of financial statements in accordance with SSARSs when either (a) the financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country not adopted by a body designated by the Council of the AICPA (Council) to establish generally accepted accounting principles (GAAP) (hereinafter referred to as a financial reporting framework generally accepted in another country), or (b) the compilation or review engagement is to be performed in accordance with both SSARSs and another set of compilation or review standards, such as International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements, or International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements.

AR-C sec. 60

AR-C sec. 90

AR-C sec. 100

 

SSARS 21 is the most significant change to the standards on accounting and review service since their inception in 1978. The American Institute of CPAs (AICPA) Accounting and Review Services Committee’s (ARSC) efforts to clarify and revise standards for reviews, compilations and engagements to prepare financial statements resulted in SSARS 21 in October 2014.

SSARS 21 now requires an engagement letter signed by management to ensure they understand the terms. Compilation engagements are now driven by what the accountant has been engaged to perform and not the old submission trigger — and a report is always required. The compilation report is streamlined to distinguish it from assurance reports. Review engagement guidance was basically updated to conform to clarity standards but now emphasis of matter and other matter paragraphs are required.

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SSARS Resources, Statement on Standards, Compilation and Review
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SSARS Resources, Statement on Standards, Compilation and Review
Description
The Accounting Review Services Committee issued Statement on Standards for Accounting and Review Services SSARS 21, SSARS 22, SSARS 23 and SSARS 24 Statement on Standards for Accounting and Review Services. SSARS clarifies and revises the standards for reviews, compilations and engagements to prepare financial statements. It also includes significant revisions that affect the standards for accountants in public practice who prepare financial statements for their clients.
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Plianced Inc.
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