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American Institute of Certified Public Accountants. Accounting and Review Services Committee. Compilation and review of financial statements

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University of MississippieGroveAICPA Professional Standards American Institute of Certified Public Accountants(AICPA) Historical Collection2004Standards for accounting and review services;Statement on standards for accounting and reviewservices 11; Statement on standards for accountingand review services 11American Institute of Certified Public Accountants. Accounting and Review Services Committee.Compilation and review of financial statementsFollow this and additional works at: https://egrove.olemiss.edu/aicpa_profPart of the Accounting Commons, and the Taxation CommonsThis Article is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection ateGrove. It has been accepted for inclusion in AICPA Professional Standards by an authorized administrator of eGrove. For more information, pleasecontact egrove@olemiss.edu.Recommended CitationAmerican Institute of Certified Public Accountants. Accounting and Review Services Committee. Compilation and review of financialstatements, "Standards for accounting and review services; Statement on standards for accounting and review services 11; Statementon standards for accounting and review services 11" (2004). AICPA Professional Standards. 302.https://egrove.olemiss.edu/aicpa_prof/302AMERICANINSTITUTEOFCERTIFIEDPUBLICACCOUNTANTSStatement on Standards forAccounting andReview ServicesIssued by the Accounting and Review Services CommitteeMay 200411Standards forAccounting and Review ServicesCopyright © 2004 byAmerican Institute of Certified Public Accountants, Inc.New York, NY 10036-8775All rights reserved. For information about the procedure for requesting permissionto make copies of any part of this work, please call the AICPA Copyright PermissionsHotline at (201) 938-3245. A Permissions Request Form for e-mailing requests isavailable at www.aicpa.org by clicking on the copyright notice on any page. Otherwise,requests should be written and mailed to the Permissions Department, AICPA,Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311-3881.1 2 3 4 5 6 7 8 9 0 AudS 0 9 8 7 6 5 43Standards for Accounting andReview Services1. An accountant must perform a compilation or review of a non-public entity in accordance with Statements on Standards forAccounting and Review Services (SSARS) issued by the AmericanInstitute of Certified Public Accountants. SSARS provide a measureof quality and the objectives to be achieved in both a compilationand review.2. The SSARS are issued by the AICPA Accounting and ReviewServices Committee (ARSC) and provide performance and reportingstandards for compilations and reviews. 3. Rule 202, Compliance With Standards, of the AICPA Code ofProfessional Conduct (AICPA, Professional Standards, vol. 2, ETsec. 202.01), requires an AICPA member who performs compilationsor reviews to comply with standards promulgated by the ARSC. TheARSC develops and issues standards in the form of Statements onStandards for Accounting and Review Services through a dueprocess that includes deliberations in meetings open to the public,public exposure of proposed SSARS, and a formal vote. The SSARSare codified.4. The accountant should have sufficient knowledge of theSSARS to identify those that are applicable to his or her engage-ment. The nature of the SSARS requires an accountant to exerciseprofessional judgment in applying them. The accountant should beprepared to justify departures from the SSARS.Interpretative Publications5. Interpretative publications consist of compilation and reviewInterpretations of the SSARS, appendixes to the SSARS, compilationand review guidance included in AICPA Audit and AccountingGuides, and AICPA Statements of Position to the extent that thoseStatements are applicable to compilation and review engagements.Interpretative publications are not standards for accounting andreview services. Interpretative publications are recommendations onthe application of the SSARS in specific circumstances, includingengagements for entities in specialized industries. An interpretativepublication is issued after all ARSC members have been provided anopportunity to consider and comment on whether the proposedinterpretative publication is consistent with the SSARS.6. The accountant should be aware of and consider interpretativepublications applicable to his or her compilation or review. If theaccountant does not apply the guidance included in an applicableinterpretative publication, the accountant should be prepared toexplain how he or she complied with the SSARS provisionsaddressed by such guidance.Other Compilation and Review Publications7. Other compilation and review publications include AICPAaccounting and review publications not referred to above; AICPA'sannual Compilation and Review Alert; compilation and review arti-cles in the Journal of Accountancy and other professional journals;compilation and review articles in the AICPA CPA Letter; continuingprofessional education programs and other instruction materials,textbooks, guide books, compilation and review programs, andchecklists; and other compilation and review publications from stateCPA societies, other organizations, and individuals.1 Other compila-tion and review publications have no authoritative status; however,they may help the accountant understand and apply the SSARS.8. If an accountant applies the guidance included in an othercompilation and review publication, he or she should be satisfiedthat, in his or her judgment, it is both relevant to the circumstancesof the engagement, and appropriate. In determining whether another compilation and review publication is appropriate, the accoun-tant may wish to consider the degree to which the publication is rec-ognized as being helpful in understanding and applying the SSARSand the degree to which the issuer or author is recognized as anauthority in compilation and review matters. Other compilation andreview publications published by the AICPA that have beenreviewed by the AICPA Audit and Attest Standards staff are pre-sumed to be appropriate. 1. The accountant is not expected to be aware of the full body of other compilation and reviewpublications.4 Statement on Standards for Accounting and Review Services No. 11Standards for Accounting and Review Services 5Predecessor's Compilation or Review Report9. SSARS currently provide guidance to be followed when thefinancial statements of a prior period have been compiled orreviewed by a predecessor accountant whose report is not presentedand the successor accountant has not compiled or reviewed thosefinancial statements. This Statement amends AR section 200.17,footnote 9, to state that a successor accountant may name the prede-cessor accountant if the predecessor accountant's practice wasacquired by, or merged with, that of the successor accountant. Newlanguage is shown in boldface italics.9The successor accountant should not name the predecessoraccountant in his or her report; however, the successor accoun-tant may name the predecessor accountant if the predecessoraccountant's practice was acquired by, or merged with, that ofthe successor accountant.Effective Date10. This Statement is effective upon issuance.This Statement titled Standards for Accounting and Review Services was adoptedunanimously by the assenting votes of the seven members of the Accounting andReview Services Committee.Accounting and Review Services Committee(2003–2004)Andrew M. Cohen, Chair Kurt OestriecherSuzanne M. Heidenreich Thomas A. RatcliffeHenry Krostich Mark E. ZiessmanJohn J. MalahoskiAICPA StaffCharles E. Landes Michael P. GlynnDirector Technical ManagerAudit and Attest Standards Audit and Attest StandardsNote: Statements on Standards for Accounting and Review Services (SSARS) areissued by the AICPA Accounting and Review Services Committee (ARSC), the seniortechnical body of the Institute designated to issue pronouncements in connection withthe unaudited financial statements or other unaudited financial information of a non-public entity. Rule 202, Compliance With Standards, of the Institute's Code ofProfessional Conduct requires an AICPA member who performs either a compilationor a review (the accountant) to comply with standards promulgated by the ARSC. Theaccountant should have sufficient knowledge of the SSARS to identify those that areapplicable to his or her compilation or review and should be prepared to justifydepartures from the SSARS.6 Statement on Standards for Accounting and Review Services No. 11060170

Standards for accounting and review services; Statement on standards for accounting and review services 11; Statement on standards for accounting and review services 11

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Standards for accounting and review services; Statement on standards for accounting and review services 11; Statement on standards for accounting and review services 11

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