Accountants Required to Implement New Compilation and Review Standards

Todd Soderlund, CPA

If your accountant currently provides you with either “compiled” or “reviewed” financial statements you may see some changes in their request for information relating to these services and in their reporting on your financial statements. These changes are the result of new guidance provided by the Accounting and Review Services Committee (ARSC) of the American Institute of Public Accountants, which was issued during November 2009. All accountants will be required to implement this new guidance (SSARS 19) for any period ending on or after December 15, 2010.

How will these changes impact you? One of the objectives of this new standard was to provide accountants with a clearer understanding of previously issued standards. However, the standard also includes some new guidance, which could impact those who engage accountants to perform financial statement compilation or review engagements. The most significant new requirements which could impact these companies relate to engagement letters, the accountant’s industry knowledge, documentation requirements and reporting requirements.