Deadline Nearing for Comments on Proposed SSARS


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.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.