AICPA Proposes Big Changes to Compilation Standards

The American Institute of CPAs’ Accounting and Review Services Committee has issued an exposure draft proposing three new and revised standards that would make significant changes in how accountants perform compilation engagements.

The exposure draft includes a revised compilation standard that would apply when an accountant is engaged to perform a compilation engagement on historical financial statements. The document also contains a new preparation standard that would apply when the accountant is engaged to prepare financial statements for a client but not engaged to perform a compilation, review or audit with respect to those financial statements.

Finally, the exposure draft contains a new association standard that would apply when the accountant agrees to permit the use of the accountant’s name in a report, document or written communication that also includes financial statements that the accountant may or may not have prepared and for which the accountant did not issue a compilation, review or audit report.

The AICPA is requesting comments on the exposure draft by May 2, 2014.