AICPA Committee Issues SSARS No. 24 Omnibus Statement

After a delayed release, the American Institute of Certified Public Accountants’ (AICPA) Accounting and Review Services Committee (ARSC) has finally issued Statement on Standards for Accounting and Review Services (SSARS) No. 24, Omnibus Statement on Standards for Accounting and Review Services – 2018. SSARS No. 24 includes the following new or amended guidance:

• AR-C Section 100, Special Considerations—International Reporting Issues: This new AR-C Section 100 features guidance for compilation or review engagements when:
  • Financial statements are prepared according to a financial reporting framework accepted in another country but is adopted by a designated body outside of the Council of the AICPA to set generally accepted accounting principles; and
  • The engagement must be performed according to SSARS and another set of compilation and review standards, like International Standard on Related Services 4410 (Revised), Compilation Engagements, or International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements.
• AR-C Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services: This revised AR-C section provides the definition for “fair presentation framework” and updates the definition of “financial reporting ” It also states that if the accountant claims responsibility for the internal control, then it would weaken the accountant’s independence. As a result, the accountant cannot review the financial statements.
• AR-C Section 90, Review of Financial Statements: This revised AR-C section includes changes such as AR-C Section 90, paragraph .39, which now aligns the requirements of the accountant’s review report to the illustrative examples under exhibit C of AR-C section 90.

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AR-C Section 100 and the amendments under AR-C Section 60 are effective for compilations and reviews of financial statements for reporting periods ending on or after June 15, 2019. The effective date for revised AR-C Section 90, paragraph .39, is upon issuance.

Approved in January, SSARS No. 24 was postponed for release until late May to help practitioners with the tax filing season.