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AICPA Requests Feedback Due Dec. 20 on Preparing Financial Statements

By:
Karen Sibayan
Published Date:
Sep 24, 2024

iStock-172989638 Financial Statements Books Balance Sheet

The AICPA is looking to amend the association's standard related to financial statement preparation, the CPA Practice Advisor reported. 

In the Exposure Draft released Sep. 23, the AICPA is proposing that AR-C Section 70, which governs the "Preparation of Financial Statements," will not apply to cases where financial statements are created as a byproduct of a consulting engagement performed under CS section 100 (Consulting Services: Definitions and Standards). 

This amendment means that accountants performing such consulting services are not required to follow the specific guidelines outlined in AR-C section 70 when preparing those financial statements.

AR-C section 70 is applicable when an accountant in public practice is engaged to prepare financial statements or prospective financial information. The section may also be applied to preparing other historical financial information.

CPA Practice Advisor said that public comments on the proposed amendment to AR-C Section 70 are due by Dec. 20. 

The report added that if approved and issued as final, the amendment titled Applicability of AR-C Section 70 to Financial Statements Prepared as Part of a Consulting Services Engagement will revise AR-C Section 70 of SSARS No. 21, Clarification and Recodification.

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