SSARS 19 Changes the Compilation and Review Reports You Receive
The Accounting and Review Services Committee (ARSC) approved dramatic revisions to the standards for compilation and review engagements. The 18 previous standards were significantly changed by one new standard,
Statement on Standards for Accounting and Review Services, Compilation and Review Engagements (SSARS 19). These changes are effective for periods ending on or after December 15, 2010.
“SSARS 19 clarifies the responsibilities for both accountants and management. Clients will notice changes in the reports they receive,” explains Steve Bodine, assurance and accounting principal with LarsonAllen.
How SSARS 19 affects you
The standard clarifies that management is responsible for:
- The preparation and fair presentation of financial statements in accordance with the applicable financial reporting framework
- Designing, implementing, and maintaining internal control relevant to preparation and fair presentation of financial statements
- Preventing and detecting fraud
- Identifying and ensuring the organization complies with the laws and regulations applicable to its operations
- Making all financial records and related information available to the accountant
- Providing the accountant with a letter at the conclusion of the review engagement that confirms certain representations made during the review
Noticeable changes
Management will see revised language in:
- Engagement letters
- Report letters
- Management representation letters
Further information
For a detailed discussion of SSARS 19, we recommend reading “
Changes on Tap for Compilation and Review Standards,” published by the
Journal of Accountancy in May 2010.
Steve Bodine, Assurance and Accounting Principal
sbodine@larsonallen.com or 612-376-4791
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