cona_ex3


Exhibit 3: Exposure Draft vs. Assembly Service
In 1995 ARSC issued an exposure draft, Assembly of Financial Statements for Internal Use Only. This chart compares that proposal with the new ED.
Concept 1999 Proposal 1995 Proposal
Relationship to SSARS no. 1 Replaces SSARS no. 1 by providing for two types of compilations: a compilation with a report and a compilation with another form of communication in certain situations. Created an exemption from SSARS no. 1.
Performance standards Provides that all compilations are still subject to the performance standards in SSARS no. 1. Provided no performance standards.
Communication Contains both reporting standards and communication standards. Required an engagement letter; transmittal letter was optional.
Level of service Provides only three levels of service: audit, review and compilation. Created a fourth level of service: audit, review, compilation and assembly.
Restricted parties Uses a “definition by exception”—third parties are all parties except for certain considered unclear. Used the term “internal-use,” which was members of management.
Nonindependence Requires disclosure in the chosen communication. Required no disclosure.

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