The Accounting and Review Services Committee issued Interpretation no. 31, Preparation of Financial Statements for Use by an Entity’s Auditors, of AR section 100, Compilation and Review of Financial Statements. The document, available at http://tinyurl.com/7z9o24, provides guidance for situations in which a client engages an accountant, other than its auditor, to prepare unaudited financial statements on behalf of management and in which those financial statements are provided by management to its outside auditor for the purposes of the annual audit.
Additionally, to provide guidance with respect to an accountant’s considerations in determining whether he or she prepared financial statements when his or her work effort results in or contributes to the existence of those financial statements, the AICPA’s Audit and Attest Standards Team has issued Technical Practice Aid (TPA) 9150.25, Determining Whether Financial Statements Have Been Prepared by the Accountant. The practice aid is available at http://tinyurl.com/786u76.