Ethics / Compilation & review


Two AICPA committees extended comment deadlines to Nov. 30 on recently proposed revisions to professional standards.

The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence.

Proposed changes to the Statements on Standards for Accounting and Review Services (SSARS) would require CPAs who are associated with unaudited financial statements that they have not compiled or reviewed to request that management include a label or notation that makes clear that the financial statements were not compiled, reviewed, or audited. Alternatively, CPAs can attach a disclaimer to the financial statements to indicate that they have not been compiled, reviewed, or audited.

To provide members additional time to consider and comment on the proposed changes, the AICPA Professional Ethics Executive Committee extended the comment deadline to Nov. 30 regarding its proposed revisions to Interpretation No. 101-3 that would make clear that the preparation of financial statements is a nonattest service subject to the interpretation’s requirements. The proposed revisions are available at tinyurl.com/6utpebb.

Likewise, the AICPA Accounting and Review Services Committee extended the comment deadline to Nov. 30 on proposed revisions to SSARS that would revise the objective of the compilation engagement and provide requirements and guidance when an accountant is associated with financial statements that were not subjected to a compilation, review, or audit engagement. See tinyurl.com/7whj7cx for the proposed revisions.

The comment period for both exposure drafts originally was scheduled to end Aug. 31.

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