Compilations & reviews

Flash update on SSARS #21

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The new statement that overhauls the SSARS body of knowledge and opens up a new service called preparation was released on October 23, 2014.

Update – See also:

From the 30,000 foot level, here are just a few changes:

SSARS #21 to be released today (10-23) – 2 hour AICPA webcast to describe changes

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SSARS #21 is an overhaul of the entire body of SSARS. It will be released today. I’ll have lots of discussion of the document over the next few weeks.

The AICPA is presenting a 2 hour CPE webcast today at 2 Eastern Time. Cost is $99 for one attendee, with discounts for multiple people.

Check out Understanding the SSARS 21 Clarification and Revision.

Great course to listen to if you aren’t going to be at the always superb CalCPA A&A conference.

Update – See also:

SSARS 21 will be issued 10/23; will allow “preparation” and revise comp & review standards

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The rewrite of SSARS into clarified format will be issued this week, Thursday, October 23.

Here is a one sentence summary: The new document will completely rewrite the SSARS literature, will add a new service called “preparation”, and will add new requirements for comps & reviews.

For a bit more information, check out AICPA Modernizes Non-Audit Standards for Accountants in Public Practice.

Starting template to develop a Quality Control document for CPA firm. It’s even legit to copy & paste.

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Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The AICPA has provided a number of new documents to help firms improve the quality control systems and to start looking at the enhancing audit quality initiative. I’ll list a few of them. It’s easy to copy & paste and at a great price.

Tools to develop a quality-control document

Every CPA firm performing assurance services is required to have a quality-control document. That applies even if you only do comps and reviews. Even if you aren’t going through a system review.

The AICPA has free practice tools to explain the QC standards along with a sample document based on the size of the firm.

You can find the documents on this page.

You can also find a document that is geared to the size of a firm: …

Starting template to develop a Quality Control document for CPA firm. It’s even legit to copy & paste.Read More »

CPAs who provide attestation services need to check out the new code of professional conduct. Soon. Seriously, check it out. Before the end of the year.

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Actually you should check out the Code of Professional Conduct in the next four or six weeks so you can make some changes to your engagement letters.

Yesterday I worked through the document in-depth for the first time. Will go into more detail on the code later.

The online version is here. You can download a free copy in PDF format by clicking on this link. That link is in the corner of the landing page for the online version.

A few highlights follow. Just a few.

Update: See added comment on the 12/15/14 effective date.

Identify threats and implement safeguards, then document doing both

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CPAs who provide attestation services need to check out the new code of professional conduct. Soon. Seriously, check it out. Before the end of the year.Read More »

Newly approved SSARS will allow a new service, ‘preparation’. Will also require written & signed engagement letters.

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Update – See also:

In August, the Accounting and Review Services Committee approved the clarified SSARS. This rewrites the SSARS into the same clarified format we saw with the audit literature.

The biggest change is the introduction of a new service, called preparation, which will allow a CPA to issue financial statements without providing an accountant’s report or performing procedures on the information.

In highly condensed terms, …

Newly approved SSARS will allow a new service, ‘preparation’. Will also require written & signed engagement letters.Read More »

What you need to document on paper copy you can do inside a PDF

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Here’ a great video with tips on how to use Adobe software to mark up and document a workpaper when it is in PDF format:

Annotating Adobe Acrobat Documents, from CPA-Scribo.

Take the client document in electronic format and mark it up without going to paper. Very cool.

With a little creativity, you could do inside a PDF anything you would do with the paper copy.

Hope you enjoy the efficiency tips.

CCH running sale on Compilation and Review CPE courses

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CCH sent out the following announcement:

 

 

Full disclosure: I am the author of seven of those courses. I was compensated to write the courses but don’t receive any additional comp after the courses were finished. Also, don’t get anything for telling you about the courses.

There’s another course I wrote for CCH that isn’t listed above:

Obviously, I think the courses would be big help for you and your staff. And there’s that 15% discount through the end of March.

Newest book on differences between audits, reviews, and compilations now available in print and for Nook

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Print copy and Nook e-book are in addition to availability for the Kindle and another half-dozen formats.

audit review compilation cover for wordpress croped

The book is an intentionally short read at about 30 pages. The print copy has 20 pages of text.  Focus is to quickly describe the differences between those levels of services using three illustrations:

  • A football game – How does advancing to the 10-yard line compare to an audit?
  • What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to different levels illustrates the differences between the levels of service.

It also explains the differences in plain language. Well, at least using less accountantese than you would usually get from an accountant.

This is a compilation of posts previously appearing on my blogs, with slight editing.

Where can you find the book?

Print book at Amazon here.

Nook e-book at Barnes and Noble here.

Kindle e-book at Amazon here.

Also available here in other formats:

  • ePub format for your iDevices
  • PDF
  • text
  • Mobi for your Kindle device

Compilation and Review Update

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Here’s a list of recent posts describing what’s going on in the comp and review world: proposed changes to compilation rules & report; a new “preparing” service, and highlights of 13/14 Comp and Review Alert.

Proposed changes to compilation rules:

“Preparation” of financials”

Comp and Review alert highlights:

 

Brief summary of proposed changes to compilation rules

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A short article in the Journal of Accountancy provides a great summary of the likely changes to SSARS for compilations and ‘preparing’ financial statements. Check out A makeover for compilations by Mike Glynn, CPA. It is a fast read at only 700 words.

Update – See also:

Two of many key points:

…

Brief summary of proposed changes to compilation rulesRead More »