AICPA amends standards for compilations and reviews

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The American Institute of CPAs has issued a new standard to provide guidance for CPAs performing compilations and reviews to address international reporting issues.

The AICPA’s Accounting and Review Services Committee released SSARS No. 24, Omnibus Statement on Standards for Accounting and Review Services—2018, on Wednesday. SSARS No. 24 adds a new section to the AICPA’s Professional Standards to provide requirements and guidance for a CPA engaged to perform a compilation or review when the financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country or, when the compilation or review is to be performed in accordance with both SSARSs and another set of compilation or review standards.

SSARS No. 24 will also harmonize the requirements and guidance for an accountant’s consideration of going concern in a review of financial statements and prevent an accountant from referencing in a review report the review or audit report of other accountants if their report includes an alert that restricts the use of that report.

An earlier amendment makes the requirements for the contents of the accountant’s review report consistent with some illustrative examples and is effective upon issuance of SSARS No. 24. All other provisions of SSARS No. 24 take effect for compilations and reviews of financial statements for periods ending on or after June 15, 2019, although early implementation is allowed.

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