The guidance from the AICPA, Statements on Standards for Accounting and Review Services 21 (SSARS 21), provides a much-needed framework for firms who want to provide additional services to their clients.

Section 70 of the standard, effective for periods ending on or after December 15, 2015, introduces a new level of service: preparation of financial statements. This is ideal for clients who need financials, but don’t want to go through the expense or complexity of a compilation, review or audit.

The types of services for which SSARS 21 Section 70 applies:

1. Preparation of financial statements at the request of a client
2. Preparation of financial statements prior to audit or review by another accountant
3. Preparation of a single financial statement, such as an income statement with substantially all relevant disclosures omitted.

Other covered services:

Section 70 is not limited to the preparation of historical financials. This guidance also applies to prospective financials as well as to these other services:

1. Specified elements, accounts, or items of a financial statement, such as schedules of rentals, royalties, profit participation or provision for income taxes.
2. Supplementary information.
3. Required supplementary information.
4. Pro forma financial information.
5. Prospective financial information, including budgets, forecasts or projections.

As part of our engagement, we will issue a disclaimer report that will state that the Financial Statements were not subjected to an audit, review, or compilation engagement by us and, accordingly, we do not express an opinion, a conclusion, nor provide any assurance on them.