Three exposure drafts issued on SSARS.

• Position: Accounting & auditing news

The AICPA's Accounting and Review Services Committee has issued three exposure drafts on statements on standards for accounting and review services.

Currently, SSARS provide guidance concerning the standards and procedures applicable to compilations and reviews of financial statements. By definition, presentations of specified elements, accounts or items of a financial statement, or pro forma financial information, are not financial statements. The proposed statement, Compilation of Specified Elements, Accounts, or Items of a Financial Statement and Pro Forma Financial Information, will allow an accountant to compile financial statement elements, accounts or items of a financial statement or pro forma financial information in accordance with SSARS. The proposed statement will not amend or revise the guidance in Chapter 4, "Reporting on Pro Forma Financial Information," of Statement on Standards for Attestation Engagements No. 10, Attestation Standards: Revision and Recodification (AICPA, Professional Standards, vol. 1, AT sec. 401), which provides guidance to a practitioner engaged to issue or who does issue an examination or review report on pro forma financial information. Additionally, the proposed statement will not amend or revise the guidance in Statement on Auditing Standards No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623), as amended, which provides guidance when an independent auditor is requested to express an opinion on one or more specified elements, accounts or items of a financial statement. The proposed statement, if issued, would be effective for engagements to compile specified elements, accounts or items of a financial statement and pro forma financial information entered into after Dec. 15, 2005. Early application would be permitted.

The proposed statement, Restricting the Use of an Accountant's Compilation or Review Report, will...