n Predecessor and Successor Accountants
1. This statement provides guidance to a successor accountant who decides to communicate with a predecessor accountant regarding acceptance of an engagement to compile or review the financial statements of a nonpublic entity.1 It requires the predecessor ac-countant to respond promptly and fully in the event of such communi-cations (paragraphs 3 through 6) in ordinary circumstances. This statement also provides guidance on additional inquiries a successor accountant may wish to make of a predecessor, and the predeces-sor's responses (paragraphs 7 through 8), to facilitate the conduct of the successor's compilation or review engagement.
2. The following definitions apply for purposes of this statement:
Successor accountant. An accountant who has been invited to make a proposal for an engagement to compile or review financial state-ments or who has accepted such an engagement.
Predecessor accountant. An accountant who has resigned or who has been notified that his services have been terminated and who, at a minimum, was engaged to compile the financial statements of the entity for the prior year or for a period ended within twelve months of the date of the financial statements to be compiled or reviewed by the successor.
1. This statement amends SSARS 2 by deletion of footnote 8 in paragraph 16 of that statement.
Copyright © 1981 by the
American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N.Y. 10036 1234567 890ARS 8987654321
Statement on Standards for Accounting and Review Services
Issued by the Accounting and Review Services Committee
American Institute of Certified Public Accountants