Compilation and Review Developments - Risk Alert

This Compilation and Review Alert is intended to provide accountants with an update on recent practice issues and professional standards that affect compilation and review engagements. This alert can also be used by an entity's internal management to address areas of concern.

This alert provides information on recently issued Standards for Accounting and Review Services (SSARS), as well as interpretations of the SSARS, including:

• SSARS No. 18, Applicability of Statements on Standards for Accounting and Review Services
• Interpretation No. 31, "Preparation of Financial Statements for Use by an Entity's Auditors  of AR section 100

You will also find recent developments on the exposure draft to revise standards for compilation and review engagements, which is expected to be issued as SSARS No. 19, Compilation and Review Engagements, in December 2009.

Current practice issues and accounting and reporting issues addressed in this alert include:

• Determining whether financial statements have been prepared by the accountant
• Engagement letters
• Analytical procedures in a review engagement
• Representation letters
• Other comprehensive bases of accounting disclosures

This alert also includes a summary of recently issued accounting guidance as well as information on emerging issues such as:

• The FASB Accounting Standards Codification™
• Convergence with International Financial Reporting Standards

This publication is an other compilation and review publication as defined in AR section 50. Other compilation and review publications have no authoritative status; however, they may help the accountant understand and apply the SSARSs. The guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of the AICPA.