Currently, AT Section 301, Financial Forecasts and Projections, prohibits a practitioner from disclosing the reasons for an independence impairment in his or her compilation report on compiled prospective financial statements. Consequently, users who want to understand the reasons for an independence impairment need to contact the client or the accountant for more information. Because of this interest on the part of users and to improve the overall transparency in the compilation report on historical financial statements, the AICPA Accounting and Review Services Committee has issued a proposed Statement on Standards for Attestation Engagements (SSAE) to allow the practitioner, if he or she chooses, to disclose the reasons for an independence impairment in the compilation report on compiled prospective financial information.
The proposed SSAE, Reporting on Compiled Prospective Financial Statements When the Practitioner’s Independence Is Impaired, would be effective for compilations of prospective financial statements for periods ending on or after December 15, 2010, with early implementation permitted.
The proposed SSAE is available for comment until September 10, 2010 |
