The Accounting and Review Services Committee is seeking comments on the exposure draft Proposed Statement on Standards for Accounting and Review Services, The Use of the Accountant’s Name in a Document or Communication Containing Unaudited Financial Statements That Have Not Been Compiled or Reviewed.
The proposal amends SSARS no. 19, Compilation and Review Engagements (AICPA, Professional Standards, vol. 2, AR sec. 60), to address considerations for accountants asked to permit the use of their name in a document or communication containing unaudited financial statements that have not been compiled or reviewed.
The proposed SSARS would establish a requirement that prior to permitting the use of his or her name in such circumstances, the accountant should read the financial statements and other information in the document and consider whether such financial statements and other information appears free from obvious material misstatements and from material inconsistencies with other knowledge or information that the accountant may have obtained.
The proposed SSARS would establish a nonreporting option when the accountant permits the use of his or her name in a document or written communication containing unaudited financial statements that have not been compiled or reviewed provided that the accountant requests that the client clearly indicate that the unaudited financial statements were not compiled or reviewed by the accountant.
The proposed effective date is for unaudited financial statements that have not been compiled or reviewed for periods ending on or after Dec. 15, 2011. The comment period for the ED ends April 29.
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