Proposed revisions clarify responsibilities for preparers

Aug 23, 2012
In accordance with recently proposed revisions to professional standards, CPAs who prepare financial statements for clients would consider that a nonattest bookkeeping service and would no longer be required to perform a compilation service with respect to those financial statements unless engaged to do so.

The changes, proposed in June by two AICPA committees, would require CPAs who prepare financial statements – but are not engaged to perform a compilation, review or audit – to request that management include a label or notation that makes clear that the financial statements were not compiled, reviewed or audited. Alternatively, CPAs can attach a disclaimer to the financial statements to indicate when they have not been compiled, reviewed or audited.

Read the full story from the Journal of Accountancy.