The Accounting and Review Services Committee of the American Institute of Certified Public Accountants has issued Statement on Standards for Accounting and Review Services (SSARS) No. 15, Elimination of Certain References to Statements on Auditing Standards and Incorporation of Appropriate Guidance into Statements on Standards for Accounting and Review Services. Many SSARSs reference the practitioner to Statements on Auditing Standards; however, many practitioners may be unfamiliar with the auditing literature because compilations and reviews represent the highest level of service they perform. Statement No. 15 therefore eliminates references to auditing literature from the SSARSs and, where appropriate, incorporates guidance similar to that originally referenced.
Specifically, SSARS No. 15 provides:
- A definition of other comprehensive basis of accounting (OCBOA), examples of appropriate OCBOA financial statement titles, and reporting examples for compilations and reviews of OCBOA financial statements;
- Guidance on emphasizing a matter when reporting on compiled or reviewed financial statements;
- Clarifying guidance regarding the accountant’s responsibility with respect to facts discovered subsequent to the date of the accountant’s compilation or review report;
- Additional illustrative representations that may be appropriate for inclusion in the management representation letter; and
- An appendix entitled “Sources of Generally Accepted Accounting Principles”.
The Statement is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2007. |
