In one minute, this simple tool could save practitioners hours

A few clicks of the mouse could save practitioners a ton of time by assisting them in determining whether they need to apply the requirements of AR-C Section 70, Preparation of Financial Statements, when their bookkeeping or accounting services result in financial statements.

A new interactive tool helps practitioners who perform accounting services for their clients determine whether they should comply with AR-C Section 70, which was created by Statement on Standards for Accounting and Review Services (SSARS) No. 21, Statement on Standards for Accounting and Review Services: Clarification and Recodification.

Even though it has been nearly nine years since the issuance of SSARS No. 21 added AR-C Section 70, the AICPA's Accounting and Review Services Committee (ARSC) as well as the various technical hotlines continue to field questions from practitioners who are confused about the applicability of AR-C Section 70.

The guide, designed by the AICPA's Audit & Standards staff with input from ARSC, aims to clarify the issue for the sake of all stakeholders.

The tool is an interactive PDF that allows practitioners to answer a short set of questions to determine whether AR-C Section 70 is required to be applied. A separate flowchart for a quick view of the decision pathway is available as well.

"Whether AR-C Section 70 applies is a yes or no answer, and the decision tree will assist practitioners with this determination," said Michael Westervelt, CPA, chair of the ARSC. "The amount of bookkeeping or accounting work that they do for their client has no bearing on the level of service provided. The bottom line is that the standard is not required unless the practitioner is engaged or hired to prepare financial statements."

Source: www.journalofaccountancy.com

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