As you are aware, financial statement preparation and the compilation and review of financial statements — all services Selden Fox can provide to companies and organizations — are governed by standards set by the American Institute of Certified Public Accountants (AICPA). For engagements on financial statements dated on or after December 15, 2015, there are changes to some of these standards that we will be complying with and that may impact your organization. Here is a brief overview of some of the changes.
Review of Financial Statements
For clients who have engaged us to perform a review of financial statements, there are a few changes. We will ask you to sign an engagement letter that includes some changes designed to more clearly outline responsibilities. The review report is changing slightly, and there may be some other changes throughout the course of the review engagement, based on the revised standards set forth by the AICPA.
Compilation of Financial Statements
For clients who have engaged us to perform a compilation engagement in the past, if you require a report on your financial statements (regardless of whether we prepared the financial statements), you will see a few changes. We will ask you to sign an engagement letter that includes some changes designed to clarify responsibilities. The compilation report is also changing to make it easier for readers to distinguish it from a review or audit report.
Preparation of Financial Statements
For clients who have engaged us to prepare their financial statements, you will notice a substantial change in our deliverables. Whereas in the past we were required to issue a report if such financial statements were expected to be used by third parties (including most boards of directors), we can now issue financial statements to you without a report. However, we will be required to indicate on each page of the prepared financial statements that no assurance is provided on the financial statements. Additionally, our firm name will not appear on the financial statements.