Significant changes to compilation included in 3 proposed standards


From Staff Reports

Three standards proposed by the AICPA Accounting and Review Services Committee (ARSC) as part of its clarity project include a proposal that would significantly change compilation literature.

An exposure draft (ED) invites public comment on the proposals. The ED includes:

  • A proposed, revised compilation standard that would apply when the accountant is engaged to perform a compilation engagement on historical financial statements.
  • A new preparation standard that would apply when the accountant is engaged to prepare financial statements for a client, but is not engaged to perform a compilation, review, or audit with respect to those financial statements.
  • A new association standard that would apply when the accountant agrees to permit the use of his or her name in a report, document, or written communication that also includes financial statements that the accountant may or may not have prepared, and for which the accountant did not issue a compilation, review, or report.


ARSC voted in October to expose the proposal for public comment.

Comments are due May 2, 2014, and can be submitted by email to Mike Glynn, CPA, a technical manager for the AICPA Auditing and Attest Standards Team who serves as staff liaison to ARSC, at mglynn@aicpa.org.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.