Overview of SSARS 21
CaseWare SSARS 21 is an integrated approach to accounting and review services and provides planning tools, intelligent checklists and work programs. The content provides non-authoritative guidance on applying SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, issued in October 2014, by the American Institute of CPAs (AICPA).
CaseWare SSARS 21 will guide you through each of the three engagements covered by SSARS 21. As you set up a client file, the first question you will be asked is the type of engagement (profile). The software will populate the client file with the basic forms needed to complete the engagement. Additional forms are available in the document library should they be required by the circumstances of the particular engagement. Each of the engagement profiles (described below) includes procedures to meet the requirements of AR-C 60 General Principles for Engagements Performed in Accordance with SSARS.
Reminder - SSARS 21 is effective (required) for engagements covering financial statement periods ending on or after December 15, 2015.
The automated tools, forms, checklists, work programs and questionnaires provided are useful practice aids that can save time and money while ensuring efficiency, effectiveness, completeness and consistency.
These forms are designed
- For use by professional staff members who have some understanding of these engagements and other relevant requirements. It is highly recommended that staff members receive some basic training on the relevant professional standards and the use of the forms before work is commenced.
- To document the work performed in a structured and systematic way. Such documentation facilitates a consistent approach to engagements and ease of file review.
The practice aids have been designed for a small and medium-sized (SME) non-public company, and do not address the wide range of circumstances or specific industry issues that may exist for a particular client or groups of clients (such as those operating in a specialized industry, government or non-profit organization, complex IT environments, etc.). Consequently, the forms should always be tailored to address the known facts and circumstances of each engagement.
In rare circumstances, it may be judged necessary to depart from a relevant presumptively mandatory requirement. In such circumstances, the accountant should perform alternative procedures to achieve the intent of that requirement. The need for the departure from a relevant presumptively mandatory requirement is expected to arise only when the requirement is for a specific procedure to be performed and, in the specific circumstances of the engagement, that procedure would be ineffective in achieving the intent of the requirement. When, in rare circumstances, this occurs, the accountant must document the justification for the departure and how the alternative procedures performed in the circumstances were sufficient to achieve the intent of that requirement.
The practice aids were updated to June 30, 2016 for SSARS 21 requirements which were as of that date. SSARS 21 is effective for periods ending on or after December 15, 2015.
Profiles
Profiles are used to disable built-in software features and remove documents (practice aids) from the Document Manager. CaseWare SSARS 21 includes three (3) profiles.
- Review (AR-C 90) - The objective when performing a review of financial statements is to obtain limited assurance as a basis for reporting whether you are aware of any material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework , primarily through the performance of inquiry and analytical procedures.
- Compilation (AR-C 80) - The objective of a compilation engagement is to apply accounting and financial expertise to assist management in the preparation of financial statements, and report in accordance with AR-C 80 without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework.
- Preparation (AR-C 70) - The objective of a preparation engagement, a nonattest service, is to prepare financial statements pursuant to a specified financial reporting framework.
Practice Aids
The authors have classified each of the practice aids into one of two categories:
- Required - Completion of the practice aid will fulfill SSARS 21 performance and documentation requirements.
- Optional - The practice aids may be used to improve efficiency of the engagement, but by themselves the practice aids do not fulfill specific SSARS 21 requirements.
- Conditional - The practice aid assists the accountant with conditions that do not occur in every engagement (i.e. work programs by each financial statement area). Driven through the Optimizer - if the client has the condition, the practice aid will be included in the engagement file and it fulfills the SSARS 21 requirements.
Note that professional standards do not require any particular form of documentation. The forms included in the CaseWare SSARS 21 template are one set of practice aids to guide accountants through the standards. In some cases, a user may decide that it may be more efficient to create a memo document in lieu of using a particular provided form, or may decide to use a proprietary form in lieu of a provided form. This can be perfectly acceptable.
However, when departing from the provided forms, for any reason, users are reminded that they are required to ensure that they address all of the applicable standards and that the alternative documentation is sufficient and appropriate. Specific documentation requirements are specified in the standards applicable to each type of SSARS engagement.
Refer to SSARS21 practice aids for the complete list.
CaseWare SSARS 21 Functionality
CaseWare SSARS 21 makes your review, compilation and preparation process more intelligent through the use of Profiles and the built-in Optimizer. As noted above, Profiles are used add / remove documents (practice aids) from the Document Manager. The Optimizer tool works behind the scenes to build the most appropriate work programs, checklists and forms based on criteria defined by the engagement team. Further tailoring of the individual work programs procedures will occur based on your professional judgment.
Indexing of Practice Aids
The indexing scheme used for CaseWare’s SSARS 21 Practice Aids is as follows:
| Phase | Indexing |
|---|---|
| General Inquiries, Analysis and Work Programs | 400 500 series |
| Financial statement area leadsheets: |
Assets: Alpha series A - W Liabilities and Equity: Alpha series BB - UU Income Statement: Numerical series 1000 |
| Completion Reportign | 700 series |
Feedback
We welcome your feedback. Please e-mail us at support@caseware.com with any suggestions.
Peer Review
CaseWare SSARS 21 has received a Quality Control Materials Review Report with a report rating of Pass. This report was accepted by the National Peer Review Committee of the AICPA on February 2, 2016. Please visit www.aicpa.org to download both the QCM Review Report from RW Group LLC and the AICPA acceptance letter.
Disclaimer
These forms are designed to assist practitioners in the implementation of SSARS 21 in conjunction with preparation, compilation and review engagements covered by SSARS 21. The forms are not intended to be a substitute for the standards themselves. A practitioner should utilise these forms in light of his or her professional judgment and the facts and circumstances involved in each particular engagement.
CaseWare® International Inc., AICPA American Institute of CPAs and CPA Canada disclaim any responsibility or liability that may occur, directly or indirectly, as a consequence of the use and application of these forms.
Copyright
The CaseWare SSARS 21 template is copyrighted by CaseWare® International Inc. Use of this template is subject to CaseWare® International Inc.’s end user license agreement. All intellectual property rights in the software and content remain the exclusive property of CaseWare® International Inc., CPA Canada or AICPA American Institute of CPAs as the case may be. When using this template you must comply with the law, including without limitation, copyright laws.
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