Standards Tracker - Compilation, Review and Preparation

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Financial reporting standards are ever-changing making it challenging to keep up. The table below provides a quick reference to recently issued accounting standards, complete with effective dates, summaries, and links to the standards themselves.

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SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions

Issued: Feb-20

Effective Date: SSARS 25is effective for engagements performed in accordance with SSARSs for periods ending on or after December 15, 2021. Early implementation is permitted.

Summary: SSARS 25 amends AR-C sections 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services; 70, Preparation of Financial Statements; 80, Compilation Engagements; and 90, Review of Financial Statements. SSARS 25 further converges AR-C section 90 with International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements and minimizes differences with the auditing standards regarding concepts that are consistent regardless of the level of service performed on the financial statements.

Additionally, SSARS No. 25:

  • Includes an explicit requirement for the accountant to determine materiality for the financial statements as a whole and apply this materiality in designing the procedures and evaluating the results obtained from those procedures.
  • Allows for the expression of an adverse review conclusion when financial statements are materially and pervasively misstated.
  • Includes a requirement that the accountant’s review report include a statement that the accountant is required to be independent of the entity and to meet the accountant’s other ethical responsibilities, in accordance with the relevant ethical requirements relating to the review.

Review the full text of the standard for additional information.

 

SSARS No. 24, Statement on Standards for Accounting and Review Services No. 24, Omnibus Statement on Standards for Accounting and Review Services — 2018

Issued: May-18

Effective Date: Except for the revision to paragraph .39 of AR-C section 90, which is effective upon issuance, all revisions are effective for compilations and reviews of financial statements for periods ending on or after June 15, 2019.

Summary: The most significant impact of SSARS No. 24 is the creation of a new AR-C Section 100, Special Considerations — International Reporting Issues, in the AICPA Professional Standards that will provide requirements and guidance for an accountant who is engaged to perform a compilation or review when one of the following is true:

  • The financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country, or
  • The compilation or review is to be performed in accordance with both the SSARSs and another set of compilation or review standards.

Review the full text of the standard for additional information.

 

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