Putting the Decades-Long ‘Plain Paper’ Debate to Rest

Will SSARS 21 Be the Final Resolution?

Howard B. Levy, CPA

Driven largely by CPAs' increased use of computers in preparing their clients' financial statements, Statement on Standards for Accounting and Review Services (SSARS) 8, Amendment to Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements—issued in October 2000—was thought to have ended 20 years of controversial discussions about CPAs' association with unaudited, so-called “plain paper” financial statements. For the first time, SSARS 8 permitted CPAs to prepare and submit (without an accompanying report) financial statements not intended for third parties to members of client management who have knowledge of the company and who understand the limitations of the financial information. (See G. R. Young, J. R. Madray, “An End to the Plain-Paper Debate?” Journal of Accountancy, Jan. 2001.)