SSARS #19

Statement on Standards for Accounting and Review Services No. 19, Compilation and Review Engagements, was officially issued Dec. 30, 2009 and is effective for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010, with one exception. That exception, which may be implemented immediately, permits an accountant to include a description in the accountant's compilation report regarding the reason(s) for an independence impairment. Major new provisions that will be effective on or after Dec. 15, 2010, include introducing the term "review evidence," incorporating a discussion of materiality in the context of a review engagement and requiring the CPA to obtain an engagement letter for all SSARS engagements. For resources related to the new standard, visit www.aicpa.org/reliability.