Academic journal article Journal of Accountancy

SSARS Hearing Yields No New Answers

Academic journal article Journal of Accountancy

SSARS Hearing Yields No New Answers

Article excerpt

There is still widespread disagreement about when financial statements have to be compiled and the so-called plain-paper issue, according to Wanda Lorenz, chairwoman of the American Institute of CPAs accounting and review services committee. ARSC held a two-day hearing on these issues in August. "However, despite the disagreement on how to solve the problem, for the first time I did see a general agreement that even though many may not like the proposed solutions, something needs fixing," she told the Journal. (For background information, see "Public Hearing on SSARS no. 1," JofA, July97, page 15.)

Although at Journal press time the committee had not yet met to formally address the results of the hearing, Lorenz discussed some of her impressions. "Even those who do not want to see a plain-paper standard are finding the current standards onerous. There were suggestions that standards should take into account the intent of the CPA and client." She cited "inadvertent compilations," in which a client wants the CPA only to post journal entries, for example. The software program used, however, automatically generates a statement. Although neither the client nor the CPA had intended to issue a formal statement, the CPA's actions call for at least a compilation. …

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