Today, the Accounting and Review Services Committee (ARSC) will release a new and updated Statement on Standards for Accounting and Review Services (SSARS).
In 1979, the world of compilation and review services saw a significant change in operation procedures when the Statement on Standards for Accounting and Review Services No. 1 was first released. 35 years ago, the SSARS defined two different levels of service:
- The Compilation, which is limited to presenting in the form of financial statements information that is the representation of management.
- The Review, which consists principally of inquiries of company personnel and analytical procedures that apply to financial data to provide limited assurance about whether material misstatements exist.
Through 35 years and nineteen updates and revisions, these principles have been the foundation of personal accounting. When SSARS No. 21 comes out Thursday, it will shake up the non-audit community like it has never seen before.
Among other things, the SSARS No. 21 will add a new level of service called “Preparation of Financial Statements.” This can be performed by an accountant when financial statements are issued that have not been audited, reviewed or compiled. The 172-page document is a massive overhaul of virtually every preceding SSARS except the pro forma financial statements in SSARS No. 14.
SSARS No. 21 will be effective for engagements performed in accordance with SSARS for periods ending on or after Dec. 15, 2015. Early implementation is permitted.
Surgent is here to help make the transition to SSARS No. 21 to ensure your business continued service to your clients. Join any of our upcoming courses covering SSARS, and don’t miss this opportunity to learn about the latest SSARS updates and discover how it will affect non-audit services.