SSARS No. 8 Amending SSARS No. 1 Issued.

• Position: Statements on Standards for Accounting and Review Services - Brief Article

The Accounting and Review Services Committee has issued Statement on Standards for Accounting and Review Services No. 8, Amendment to Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements (No. 060661 CPA 12).

SSARS No. 8 will make fundamental changes to the way in which accountants view the compilation engagement. It creates new options for accountants when performing compilation engagements in which the financial statements are not expected to be used by a third party, and also allows the accountant to use his or her professional judgment in dealing with the client. Some of the major changes are:

* Revising the definition of submission. By modifying the definition of submission, the majority of the applicability problems that the profession is facing would be solved. Under SSARS No. 8, submission of financial statements is defined as "presenting to a client or third parties financial statements that the accountant has prepared either manually or through the use of computer software." Although practitioners will still have to use their professional judgment to determine if they have prepared and presented a financial statement, this modification was the best way to address today's technological environment, while still maintaining a minimum level of service.

* Under SSARS No. 8, if an accountant submits financial...