Reporting on Comparative Financial Statements
1. This statement establishes standards for reporting on compara-tive financial statements1 of a nonpublic entity when financial state-ments of one or more periods presented have been compiled or re-viewed in accordance with SSARS 1.2
2. When comparative financial statements are presented, the ac-countant should issue an appropriate report(s) covering each period presented in accordance with the provisions of this statement.3
3. Client-prepared financial statements of some periods that have not been audited, reviewed, or compiled may be presented on sepa-rate pages of a document that also contains financial statements of other periods on which the accountant has reported if they are ac-companied by an indication by the client that the accountant has not audited, reviewed, or compiled those financial statements and that the accountant assumes no responsibility for them. Whenever the accountant becomes aware that financial statements of other periods
1. This statement supersedes Statement on Standards for Accounting and Review Services 1, paragraph 50.
2. For purposes of this statement, a nonpublic entity is any entity other than (a) one whose securities trade in a public market either on a stock exchange (domestic or foreign) or in the over-the-counter market, including securities quoted only locally or regionally, (b) one that makes a filing with a regulatory agency in preparation for the sale of any class of its securities in a public market, or (c) a subsidiary, corporate joint venture, or other entity controlled by an entity covered by (a) or (b). This state-ment amends SSARS 1, paragraph 4, by substituting the foregoing definition of a nonpublic entity. The terms financial statements, compilation, and review are defined in paragraph 4 of SSARS 1.
3. See paragraphs 33 to 35 for guidance during the transition period when an ac-countant has previously issued a disclaimer of opinion in accordance with the provi-sions of SAS no. 1, section 516 or 517.
Copyright © 1979 by the
American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N.Y. 10036
234567890 ARS 89876543210
Statement on Standards for Accounting and Review Services
Issued by the Accounting and Review Services Committee
American Institute of Certified Public Acountants