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AICPA Committee to Release Standards Later This Year

At its three-day meeting in Baltimore, Maryland, last month, the American Institute of Certified Public Accountants’ (“AICPA”) Accounting and Review Services Committee (“ARSC”) voted to finalize its proposed Statement on Standards for Accounting and Review Services (SSARS) Review of Financial Statements. Expected to be released later this year, the standard will be released as soon as the ARSC finishes other parts of its Clarity Project.

Also at the meeting, the ARSC reviewed comment letters submitted regarding the proposed SSARS Preparation of Financial Statements; Compilation Engagements, and Association with Financial Statements. As a result, the ARSC removed proposed requirements in regards to association with financial statements. Instead, the ARSC will offer guidance for financial statement preparation, compilation and review. Further, the ARSC will keep the compilation reporting requirements, thus creating structured compilation reports that are dissimilar from assurance reports.

The ARSC also reviewed comment letters concerning the proposed SSARS Framework for Performing and Reporting on Compilation and Review Engagements (“Framework”). If the Framework is finalized, it will replace paragraphs .010.04 and .090.51 of AR Section 60, “Framework for Performing and Reporting on Compilation and Review Engagements.” The proposed standards are expected to be effective for engagements on financial statements on or after December 15, 2015. Scheduled to meet in August, the ARSC will vote to finalize the revised Framework, preparation, and compilation standards in simplified formats, which the AICPA is likely to issue with SSARS No. 21’s clarified review standard.

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