Clarified Preparation, Compilation and Review Standards
Statements on Standards for Accounting and Review Services (SSARSs) are issued by the AICPA Accounting and Review Services Committee (ARSC), the senior technical committee of the AICPA designated to issue pronouncements in connection with the unaudited financial statements or other unaudited financial information of an entity that is not required to file financial statements with a regulatory agency in connection with the sale or trading of its securities in a public market. AICPA Council has designated ARSC as a body to establish technical standards under the "General Standards Rule" (ET sec. 1.310.001) and the "Compliance With Standards Rule" (ET sec. 1.300.001) of the Institute's Code of Professional Conduct.
Interpretations are issued to provide guidance on the application of SSARSs. Interpretations are issued after all members of ARSC have been provided an opportunity to consider and comment on whether the proposed interpretation is consistent with SSARSs. An interpretation is not as authoritative as a SSARS, but members should be aware that they may have to justify a departure from an interpretation if the quality of their work is questioned.
SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, was issued in October 2014. SSARS No. 21 represents the AICPA’s Accounting and Review Services Committee's efforts to clarify and revise the standards for reviews, compilations, and engagements to prepare financial statements. SSARS No. 21 includes significant revisions that affect the standards for accountants in public practice who prepare financial statements for their clients.
SSARS No. 21 is effective for reviews, compilations, and engagements to prepare financial statements for periods ending on or after December 15, 2015. Early implementation is permitted.
Below are the standards and related interpretations that are current as of June 1, 2021.
The following standards have been superseded but are available for historical purposes only.
Original Standard No. |
Title & Synopsis |
Section in Professional Standards |
Interpretations (if applicable) |
SSARS No. 21 |
General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services This section includes the general principles for engagements performed in accordance with SSARSs. |
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Preparation of Financial Statements |
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Compilation Engagements |
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Review of Financial Statements This section contains the requirements and guidance related to review engagements and is essentially a clarity redraft of the review literature in SSARS No. 19, with few changes. |
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SSARS No. 22 |
Compilation of Pro Forma Financial Information |
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SSARS No. 23 |
Omnibus Statement on Standards for Accounting and Review Services—2016 |
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SSARS No. 24 |
Omnibus Statement on Standards for Accounting and Review Services—2018 |
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| SSARS No. 25 | Materiality in a Review of Financial Statements and Adverse Conclusions 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. |
Recently Issued AICPA SSARSs and Interpretations
SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions
Standards Setting Bodies
- Accounting and Review Services Committee
- Auditing Standards Board
- Federal Accounting Standards Advisory Board
- Financial Accounting Standards Board
- Governmental Accounting Standards Board
- Public Company Accounting Oversight Board
- International Accounting Standards Board
- International Auditing and Assurance Standards Board
