SSARS No. 21


SSARS No. 21

On October 23, 2014 the Accounting and Review Services Committee of the AICPA released SSARS No. 21, which is the most significant change to the presentation of non-audited financial statements since SSARS was introduced in 1978. This standard–which is mandatory for reporting periods that end on or after December 15, 2015 but is available for early implementation–effectively expands financial statement presentation and reporting options to five:

  1. The Audit
  2. The Review
  3. The Compilation with full disclosure
  4. The Compilation in which substantially all disclosures are omitted
  5. The Preparation

The National Society of Accountants have published a 4-part series of articles intended to provide NSA members with advance information about the AICPA’s Statement on Standards for Accounting and Review Services [SSARS] No. 21, which was released on October 23, 2014. The first installment describes a new level of engagement–The Preparation–which falls below the level of a Compilation as defined by the Accounting and Review Services Committee of the AICPA. The second installment discusses the changes to the Compilation level of service and offered comparisons between the new Preparation and the revised Compilation. The third installment describes the changes to the new management representation letter for the Review level of service. The fourth and final installment focuses on the new Review Report and contrast it with the Preparation and the Compilation (published May 2015).

Read SSARS is Coming: Part I
Read SSARS is Coming: Part II
Read SSARS is Coming: Part III
Read SSARS is Coming: Part IV

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