Exhibit Issued for AICPA Audit Guide Compilation and Review Engagements

The AICPA issued an exhibit to help answer questions regarding the impact of Statement on Standards for Accounting and Review Services (SSARS) no. 19, Compilation and Review Engagements, on compilations and reviews of personal financial statements.


The Accounting and Review Services Committee issued SSARS no. 19 in December 2009, making the most significant changes to the compilation and review literature since the issuance of SSARS no. 1, Compilation and Review of Financial Statements, in December 1978. SSARS no. 19 is effective for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010, with early implementation of a new compilation reporting option permitted.


Questions have been raised about how the requirements and guidance apply to compilations and reviews of personal financial statements. AR section 80, Compilation of Financial Statements, and AR section 90, Review of Financial Statements (AICPA, Professional Standards, vol. 2), are applicable to compilations and reviews of personal financial statements in the same manner as to compilations and reviews of financial statements of commercial entities.


The exhibit discusses internal control for personal financial statements and includes examples of standard engagement letters for a compilation and a review of personal financial statements.


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