New standard will include revised compilation and review report requirements

SSARS No. 24 will create and amend AR-C sections.

The AICPA Accounting and Review Services Committee (ARSC) voted to issue a new standard in late May containing revised compilation and review report requirements.

The new standard is titled Statement on Standards for Accounting and Review Services (SSARS) No. 24, Omnibus Statement on Standards for Accounting and Review Services — 2018. Its post-busy season release date is intended to decrease the impact on practitioners.

The most significant impact of SSARS No. 24 is the creation of a new AR-C Section 100, Special Considerations — International Reporting Issues, in the AICPA Professional Standards that will provide requirements and guidance for an accountant who is engaged to perform a compilation or review when one of the following is true:

  • The financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country, or
  • The compilation or review is to be performed in accordance with both the SSARSs and another set of compilation or review standards.

In addition, SSARS No. 24 will amend AR-C Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, and AR-C Section 90, Review of Financial Statements. These amendments will harmonize the requirements and guidance regarding the accountant's consideration of going concern in a review of financial statements with the corresponding requirements and guidance in AU-C Section 930, Interim Financial Information. These amendments also will preclude an accountant from referencing, in an accountant's review report, the review or audit report of other accountants if that accountant's report contains an alert that restricts the use of such report.

Except for an amendment to paragraph .39 of AR-C ­Section 90, SSARS No. 24 will take effect for compilations and reviews of financial statements for periods ending on or after June 15, 2019.

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