We can provide you with compilation and review services for your business entity’s financial statements in accordance with SSARS. SSARS is the abbreviation for Statements on Standards and Review Services which are the written rules for providing “accounting and review services” by the American Institute of Certified Public Accountants or AICPA. Compilations and review services apply specified procedures and expertise under the SSARS.
The preparation of financial statements and/or information can be quite technical, and therefore you and/or your business entity may not have the internal talent to prepare such documents. For example, you may need financial statements when a lender requests them to obtain a loan.
Another common situation where “SSARS Preparation” statements are required is when an “independent” audit or review must be performed on your company’s financial statements. In this type of scenario, the firm that performs the audit or review normally also cannot prepare the same financial statements, if the firm is to be considered “independent”. An independent firm normally does not perform attest work on financials that it also prepares. Such activity by an auditor or accountant is considered to be grading your own test and demonstrates a lack of independence. This is where we can come in and help. Under the rules of the SSARS Preparation Engagement, we prepare your financial statements or other information and let the other CPA firm perform a review or audit on those financial statements.
The statements we prepare can be G.A.A.P. or generally accepted accounting principles based or "special purpose framework" basis statements. The special purpose framework basis statements can be cash basis, income tax basis, and even a contractual basis. We usually prepare these types of statements for smaller entities where the information may be more easily obtained and/ or more relevant to the entity’s owners than G.A.A.P. basis financials. As always careful upfront planning and research are often required.