ReportingonComparativeFinancialStatements 2639
AR Section 200
Reporting on Comparative Financial
Statements
Issue date, unless
otherwise indicated:
October 1979
See section 9200 for interpretations of this section.
Source: SSARS No. 2;
SSARS No. 3; SSARS No. 4;
SSARS No. 5; SSARS No. 7;
SSARS No. 11; SSARS No. 12;
SSARS No. 15; SSARS No. 17
.01 This section establishes standards for reporting on comparative nan-
cial statements
[1]
of a nonissuer when nancial statements of one or more pe-
riods presented have been compiled and reported on or reviewed in accordance
with section 80, Compilation of Financial Statements, or section 90, Review
of Financial Statements, respectively.
2
[Revised, October 2000, to reect con-
forming changes necessary due to the issuance of Statement on Standards for
Accounting and Review Services (SSARS) No. 8. As amended, effective for com-
pilations and reviews of nancial statements for periods ending after Decem-
ber 15, 2008, by SSARS No. 17. Revised, December 2010, to reect conforming
changes necessary due to the issuance of SSARS No. 19.]
.02 When comparative nancial statements are presented, the accountant
should issue an appropriate report(s) covering each period presented in accor-
dance with the provisions of this section. Exhibit A, "Illustrative Compilation
Reports on Comparative Financial Statements," and exhibit B, "Illustrative Re-
view Reports on Comparative Financial Statements," provide illustrative re-
ports on comparative nancial statements, including how the title of the report
may be modied when the level of service between the years is different.
[3]
.03 Client-prepared nancial statements of some periods that have not
been audited, reviewed, or compiled may be presented on separate pages of
a document that also contains nancial statements of other periods on which
the accountant has reported if they are accompanied by an indication by the
client that the accountant has not audited, reviewed, or compiled those nan-
cial statements and that the accountant assumes no responsibility for them.
Whenever the accountant becomes aware that nancial statements of other pe-
riods that have not been audited, reviewed, or compiled have been presented in
[1]
[Footnote deleted, December 2010, to reect conforming changes necessary due to the issuance
of Statement on Standards for Accounting and Review Services (SSARS) No. 19.]
2
The terms nonissuer and nancial statements are dened in paragraph .04 of section 60, Frame-
work for Performing and Reporting on Compilation and Review Engagements. [As amended, effective
for compilations and reviews of nancial statements for periods ending after December 15, 2008, by
SSARS No. 17. Footnote revised, December 2010, to reect conforming changes necessary due to the
issuance of SSARS No. 19.]
[3]
[Footnote deleted to reect the conforming changes necessary due to the issuance of SSARS
No. 8.]
©2016, AICPA AR §200.03
2640 StatementsonStandardsforAccountingandReviewServices
columnar form in a document with nancial statements on which he or she has
compiled or reviewed and that his or her name has been used or his or her re-
port included in the document, he or she should advise his or her client that the
use of his or her name or report is inappropriate and should consider what other
actions might be appropriate, including consultation with his or her attorney.
.04 An accountant may modify his or her report with respect to one or
more nancial statements for one or more periods while issuing an unmodied
report on the other nancial statements presented.
.05 Compiled nancial statements that omit substantially all of the dis-
closures required by an applicable nancial reporting framework
[4]
are not
comparable to nancial statements that include such disclosures. Accordingly,
the accountant should not issue a report on comparative nancial statements
when statements for one or more, but not all, of the periods presented omit
substantially all of the disclosures required by an applicable nancial report-
ing framework. (See paragraphs .30–.31 for guidance on reporting on nancial
statements that previously did not omit substantially all of the disclosures re-
quired by an applicable nancial reporting framework.) [As amended by the
issuance of SSARS No. 15, July 2007. Revised, December 2010, to reect con-
forming changes necessary due to the issuance of SSARS No. 19.]
.06 Each page of the comparative nancial statements compiled or re-
viewed by the accountant should include a reference such as "See Accountant's
Compilation Report" or "See Independent Accountant's Review Report." [Re-
vised, December 2010, to reect conforming changes necessary due to the is-
suance of SSARS No. 19.]
Definitions
.07 The following denitions apply for purposes of this section:
Comparative nancial statements. Financial statements of two or more pe-
riods presented in columnar form.
Continuing accountant. An accountant who has been engaged to audit, re-
view, or compile and report on the nancial statements of the current pe-
riod and one or more consecutive periods immediately prior to the current
period.
Updated report. A report issued by a continuing accountant that takes into
consideration information that he or she becomes aware of during his or her
current engagement and that re-expresses his or her previous conclusions
or, depending on the circumstances, expresses different conclusions on the
nancial statements of a prior period as of the date of his or her current
report.
5
Reissued report. A report issued subsequent to the date of the original report
that bears the same date as the original report. A reissued report may need
to be revised for the effects of specic events; in these circumstances, the
report should be dual-dated with the original date and a separate date that
applies to the effects of such events.
[4]
[Footnote deleted, December 2010, to reect conforming changes necessary due to the issuance
of SSARS No. 19]
5
See paragraph .17 of section 80, Compilation of Financial Statements, and paragraph .28 of
section 90, Review of Financial Statements. [Footnote revised, November 2002, to reect conforming
changes necessary due to the issuance of Statement on Standards for Accounting and Review Services
No. 9. Footnote revised, May 2004, to reect the conforming changes necessary due to the issuance
of Statement on Standards for Accounting and Review Services No. 10. Footnote revised, December
2010, to reect conforming changes necessary due to the issuance of SSARS No. 19.]
AR §200.04 ©2016, AICPA
ReportingonComparativeFinancialStatements 2641
Continuing Accountant’s Standard Report
.08 A continuing accountant who performs the same or a higher level of
service with respect to the nancial statements of the current period should
update his or her report on the nancial statements of a prior period presented
with those of the current period.
6
A continuing accountant who performs a
lower level of service with respect to the nancial statements of the current
period should either (a) include as a separate paragraph of his or her report
a description of the responsibility assumed for the nancial statements of the
prior period (see paragraphs .11–.12) or (b) reissue his or her report on the
nancial statements of the prior period.
.09 [Paragraph deleted, December 2010, to reect presentation style and
conforming changes necessary due to the issuance of SSARS No. 19.]
.10 [Paragraph deleted, December 2010, to reect presentation style and
conforming changes necessary due to the issuance of SSARS No. 19.]
.11 A continuing accountant who performs a compilation of the current-
period nancial statements and has previously reviewed one or more prior-
period nancial statements should report as indicated in either (a)or(b)that
follow:
a. Issue a compilation report on the current-period nancial state-
ments that includes a description of the responsibility assumed
for the nancial statements of the prior period. The description
should include the original date of the accountant's report and
should also state that he or she has not performed any procedures
in connection with that review engagement after that date.
b. Combine his or her compilation report on the nancial statements
of the current period with his or her reissued review report on
the nancial statements of the prior period or present them sepa-
rately. The combined report should state that the accountant has
not performed any procedures in connection with that review en-
gagement after the date of his or her review report.
.12 See exhibit A and exhibit B for examples of a continuing accountant's
standard report on comparative nancial statements when
•
the same level of service has been performed for both periods.
•
the nancial statements of the current period have been reviewed
and those of the prior period have been compiled.
•
the nancial statements of the current period have been compiled
and those of the prior period have been reviewed.
[Revised, December 2010, to reect presentation style and conforming changes
necessary due to the issuance of SSARS No. 19.]
Continuing Accountant’s Changed Reference
to a Departure From the Applicable Financial
Reporting Framework
.13 During his or her current engagement, the accountant should be aware
that circumstances or events may affect the prior-period nancial statements
6
For purposes of this section, a review is a higher level of service and a compilation is a lower
level of service. When one of the periods is audited, see paragraphs .28–.29.
©2016, AICPA AR §200.13
2642 StatementsonStandardsforAccountingandReviewServices
presented, including the adequacy of informative disclosures. The accountant
should consider the effects on his or her report on the prior-period nancial
statements of circumstances or events coming to his or her attention.
.14 When the accountant's report on the nancial statements of the prior
period contains a changed reference to a departure from the applicable nancial
reporting framework,
7
his or her report should include a separate explanatory
paragraph indicating
a. the date of the accountant's previous report.
b. the circumstances or events that caused the reference to be
changed.
c. when applicable, that the nancial statements of the prior period
have been changed.
[Revised, December 2010, to reect presentation style and conforming changes
necessary due to the issuance of SSARS No. 19.]
.15 See exhibit A and exhibit B for examples of reports which include an
explanatory paragraph when an accountant's report contains a changed ref-
erence to a departure from accounting principles generally accepted in the
United States of America. [Revised, December 2010, to reect presentation
style and conforming changes necessary due to the issuance of SSARS No. 19.]
Predecessor’s Compilation or Review Report
.16 A predecessor may reissue his or her report at the client's request if he
or she is able to make satisfactory arrangements with his or her former client
and if he or she complies with the provisions of paragraphs .20–.24. However,
a predecessor is not required to reissue his or her compilation or review report
on the nancial statements of a prior period. If he or she does not reissue his or
her compilation or review report on the nancial statements of a prior period,
a successor should either (a) make reference to the report of the predecessor
in accordance with the provisions of paragraphs .17–.19 or (b) perform a com-
pilation or review of the nancial statements of the prior period and report on
them accordingly.
[8]
Predecessor’s Compilation or Review Report Not Presented
.17 When the nancial statements of a prior period have been compiled
or reviewed by a predecessor whose report is not presented and the successor
has not compiled or reviewed those nancial statements, the successor should
make reference in an additional paragraph(s) of his or her report on the current-
period nancial statements to the predecessor's report on the prior-period -
nancial statements. This reference should include the following matters:
a. A statement that the nancial statements of the prior period were
compiled or reviewed by another accountant (other accountants).
9
b. The date of his or her (their) report.
7
A changed reference includes the removal of a prior reference or the inclusion of a new reference.
[8]
[Footnote deleted by the issuance of SSARS No. 4, December 1981.]
9
The successor accountant should not name the predecessor accountant in his or her report un-
less the predecessor accountant if the predecessor accountant's practice was acquired by, or merged
with, that of the successor accountant. [Footnote amended, effective May 2004, by SSARS No. 11. Foot-
note revised, December 2010, to reect conforming changes necessary due to the issuance of SSARS
No. 19.]
AR §200.14 ©2016, AICPA
ReportingonComparativeFinancialStatements 2643
c. If the nancial statements of the prior period were compiled, a
statement that the other accountant(s) did not audit or review the
nancial statements and, accordingly, did not express an opinion
or provide any assurance about whether the nancial statements
are in accordance with the applicable nancial reporting frame-
work.
d. If the nancial statements of the prior period were reviewed, a
statement that, based on his or her review, the other accoun-
tant(s) are not aware of any material modications that should be
made to the nancial statements in order for them to be in con-
formity with the applicable nancial reporting framework, other
than those modications, if any, indicated in the report.
e. A description or a quotation of any modications of the standard
report and of any paragraphs emphasizing a matter regarding the
nancial statements.
[Revised, December 2010, to reect conforming changes necessary due to the
issuance of SSARS No. 19.]
.18 See exhibit A and exhibit B for examples of reports when the predeces-
sor compiled or reviewed the nancial statements of the prior period, respec-
tively. [Revised, December 2010, to reect presentation style and conforming
changes necessary due to the issuance of SSARS No. 19.]
[.19] [Paragraph deleted, December 2010, to reect presentation style and
conforming changes necessary due to the issuance of SSARS No. 19.]
Predecessor’s Compilation or Review Report Reissued
.20 Before reissuing a compilation or review report on the nancial state-
ments of a prior period, a predecessor should consider whether his or her report
is still appropriate. In making this determination, the predecessor should con-
sider (a) the current form and manner of presentation of the prior-period nan-
cial statements, (b) subsequent events not previously known, and (c) changes in
the nancial statements that require the addition or deletion of modications
to the standard report.
.21 A predecessor should perform the following procedures before reissu-
ing his or her compilation or review report on the nancial statements of a prior
period:
a. Read the nancial statements of the current period and the suc-
cessor's report.
b. Compare the prior-period nancial statements with those previ-
ously issued and with those of the current period.
c. Obtain a letter from the successor that indicates whether he or
she is aware of any matter that, in his or her opinion, might have a
material effect on the nancial statements, including disclosures,
reported on by the predecessor. The predecessor should not refer
in his or her reissued report to this letter or to the report of the
successor.
.22 If a predecessor becomes aware of information, including information
about events or transactions occurring subsequent to the date of his or her
previous report, that he or she believes may affect the prior-period nancial
statements or his or her report on them, he or she should (a) make inquiries or
perform analytical procedures similar to those he or she would have performed
if he or she had been aware of such information at the date of his or her report on
the prior-period nancial statements and (b) perform any other procedures he or
©2016, AICPA AR §200.22
2644 StatementsonStandardsforAccountingandReviewServices
she considers necessary in the circumstances. For example, the predecessor
may wish to discuss this information with the successor or to review the en-
gagement documentation of the successor as it relates to the matters affecting
the prior-period nancial statements. If the predecessor decides, based on the
information obtained, that his or her report on the prior-period nancial state-
ments should be revised, he or she should follow the guidance in paragraphs
.14–.15 and .23–.24. [Revised, December 2010, to reect conforming changes
necessary due to the issuance of SSARS No. 19.]
.23 A predecessor's knowledge of the current affairs of his or her former
client is obviously limited in the absence of a continuing relationship. Conse-
quently, when reissuing his or her report on the prior-period nancial state-
ments, a predecessor should use the date of his or her previous report to avoid
any implication that he or she has performed procedures after that date other
than those described in paragraphs .20–.22. If the predecessor revises his or her
report or if the nancial statements are restated, he or she should dual-date his
or her report (for example, "March 1, 20X1, except for note X, as to which the
date is March 15, 20X2"). The predecessor's responsibility for events occurring
subsequent to the completion of his or her engagement is limited to the spe-
cic event referred to in the note or otherwise disclosed. He or she should also
obtain a written statement from the former client setting forth the informa-
tion currently acquired and its effect on the prior-period nancial statements
and, if applicable, expressing an understanding of its effect on the predecessor's
reissued report.
.24 If a predecessor is unable to complete the procedures described in
paragraphs .20–.23, he or she should not reissue his or her report and may
wish to consult with his or her attorney regarding the appropriate course of
action.
Restated Prior-Period Financial Statements
.25 When prior-period nancial statements have been restated,
10
the pre-
decessor accountant would normally reissue his or her report following the
guidance in paragraph .22. If the predecessor decides not to reissue his or her
report, the successor accountant may be engaged to report on the nancial
statements for the prior year. If the predecessor accountant does not reissue
his or her report and the successor accountant is not engaged to report on the
prior year nancial statements, the successor accountant should indicate in the
introductory paragraph of his or her compilation or review report that a pre-
decessor accountant reported on the nancial statements of the prior period
before restatement. In addition, if the successor accountant is engaged to com-
pile or review the restatement adjustment(s), he or she may also indicate in the
accountant's report that he or she compiled or reviewed the adjustment(s) that
was (were) applied to restate prior-year nancial statements. [As amended, ef-
fective for compilations and reviews of nancial statements for periods ending
after December 15, 2005, by SSARS No. 12.]
.26 See exhibit A and exhibit B for examples of reports when the pre-
decessor accountant's report is not presented and the successor accountant is
10
See paragraphs .10–.11 of section 400, Communications Between Predecessor and Successor
Accountants, for guidance regarding communication to the predecessor accountant with respect to
information that leads the successor accountant to believe that the nancial statements reported on
by the predecessor accountant may require revision. [Footnote added, effective for compilations and
reviews of nancial statements for periods ending after December 15, 2005, by SSARS No. 12.]
AR §200.23 ©2016, AICPA
ReportingonComparativeFinancialStatements 2645
engaged to compile or review the restatement adjustment(s), respectively.
[11]
[As amended, effective for compilations and reviews of nancial statements for
periods ending after December 15, 2005, by SSARS No. 12. Revised, December
2010, to reect presentation style and conforming changes necessary due to the
issuance of SSARS No. 19.]
[.27] [Paragraph deleted, December 2010, to reect presentation style and
conforming changes necessary due to the issuance of SSARS No. 19.]
[12]
Reporting When One Period Is Audited
[.28] [Paragraph deleted, December 2010, to remove reference to auditing
literature.]
.29 When the current-period nancial statements of a nonissuer have
been compiled or reviewed and those of the prior period have been audited,
the accountant should issue an appropriate compilation or review report on
the current-period nancial statements and, if the auditor's report on the prior
period nancial statements is not reissued, the report on the current period
should include as a separate paragraph an appropriate description of the re-
sponsibility assumed for the nancial statements of the prior period. The sep-
arate paragraph should indicate (a) that the nancial statements of the prior
period were audited previously, (b) the date of the previous report, (c)thetype
of opinion expressed previously, (d) if the opinion was other than unmodied,
the substantive reasons therefor, and (e) that no auditing procedures were per-
formed after the date of the previous report. See exhibit A and exhibit B for
examples of compilation and review reports, respectively, when the prior year
nancial statements were audited. [Paragraph renumbered by the issuance of
SSARS No. 12, July 2005. As amended, effective for compilations and reviews
of nancial statements for periods ending after December 15, 2008, by SSARS
No. 17. Revised, December 2010, to reect the presentation style and conform-
ing changes necessary due to the issuance of SSARS No. 19. Revised, Decem-
ber 2012, to reect conforming changes necessary due to the issuance of SAS
Nos. 122–126.]
Reporting on Financial Statements That Previously
Did Not Omit Substantially All Disclosures
.30 An accountant who has compiled, reviewed, or audited nancial state-
ments that did not omit substantially all of the disclosures required by an appli-
cable nancial reporting framework may subsequently be requested to compile
statements for the same period that do omit substantially all of those disclo-
sures when they are to be presented in comparative nancial statements. In
these circumstances the accountant may report on comparative compiled -
nancial statements that omit such disclosures if he or she includes in his or her
report an additional paragraph indicating the nature of the previous service
rendered with respect to those nancial statements and the date of his or her
previous report. [Paragraph renumbered by the issuance of SSARS No. 12, July
2005. Revised, December 2010, to reect conforming changes necessary due to
the issuance of SSARS No. 19.]
[11]
[Footnote deleted, December 2010, to reect conforming changes necessary due to the issuance
of SSARS No. 19.]
[12]
[Footnote deleted, December 2010, to reect conforming changes necessary due to the issuance
of SSARS No. 19.]
©2016, AICPA AR §200.30
2646 StatementsonStandardsforAccountingandReviewServices
.31 See exhibit A for an example of a report appropriate when prior-period
nancial statements that omit substantially all disclosures have been compiled
from previously reviewed nancial statements for the same period. [As
amended, effective for periods ending after December 15, 1993, by SSARS No.
7. Paragraph renumbered by the issuance of SSARS No. 12, July 2005. Revised,
December 2010, to reect the presentation style and conforming changes nec-
essary due to the issuance of SSARS No. 19.]
[.32–.33] [Paragraphs deleted, December 2010, to reect conforming
changes necessary due to the issuance of SSARS No. 19.]
[13–14]
Transition
[.34–.36] [Paragraphs deleted to reect conforming changes necessary due
to the issuance of SSARS No. 8. Paragraphs renumbered by the issuance of
SSARS No. 12, July 2005.]
Effective Date
.37 This section will be effective for reports on comparative nancial state-
ments for periods ending on or after November 30, 1979. However, earlier ap-
plication is encouraged for periods ending on or after July 1, 1979. [Paragraph
renumbered by the issuance of SSARS No. 12, July 2005.]
[13–14]
[Footnotes deleted, December 2010, to reect conforming changes necessary due to the is-
suance of SSARS No. 19.]
AR §200.31 ©2016, AICPA
ReportingonComparativeFinancialStatements 2647
.38
Exhibit A
Illustrative Compilation Reports on Comparative Financial
Statements
Compilation Report on Comparative Financial Statements When a
Compilation Has Been Performed for Both Periods
Accountant’s Compilation Report
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheets of XYZ Company as of
December 31, 20X2 and 20X1, and the related statements of income, retained
earnings, and cash ows for the years then ended. I (we) have not audited or re-
viewed the accompanying nancial statements and, accordingly, do not express
an opinion or provide any assurance about whether the nancial statements
are in accordance with accounting principles generally accepted in the United
States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Compilation Report When the Financial Statements of the Current
Year Have Been Compiled and Those of The Prior Year Have Been
Reviewed
Accountant’s Compilation Report
1
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. I (we) have not audited or reviewed the
20X2 nancial statements and, accordingly, do not express an opinion or provide
any assurance about whether the nancial statements are in accordance with
accounting principles generally accepted in the United States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
1
Alternatively, an accountant may use a title that does not describe the level of service such as
"Accountant's Report" or "Report of Certied Public Accountants" because the report refers to different
levels of service.
©2016, AICPA AR §200.38
2648 StatementsonStandardsforAccountingandReviewServices
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
The accompanying 20X1 nancial statements were previously reviewed by me
(us) and I (we) stated that I was (we were) not aware of any material modi-
cations that should be made to those nancial statements in order for them to
be in conformity with accounting principles generally accepted in the United
States of America in my (our) report dated March 31, 20X2, but I (we) have not
performed any procedures in connection with that review engagement since
that date.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Compilation Report on Comparative Financial Statements When the
Accountant’s Report Includes a Changed Reference to a Departure
From Accounting Principles Generally Accepted in the United States
of America
Accountant’s Compilation Report
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheets of XYZ Company as of
December 31, 20X2 and 20X1, and the related statements of income, retained
earnings, and cash ows for the years then ended. I (we) have not audited or re-
viewed the accompanying nancial statements and, accordingly, do not express
an opinion or provide any assurance about whether the nancial statements
are in accordance with accounting principles generally accepted in the United
States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
In my (our) report dated March 1, 20X2 with respect to the 20X1 nancial
statements, we referred to a departure from accounting principles generally
accepted in the United States of America because the company carried its land
at appraised values. As described in Note X, the Company has changed its
method of accounting for land and restated its 20X1 nancial statements to
conform with accounting principles generally accepted in the United States of
America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
AR §200.38 ©2016, AICPA
ReportingonComparativeFinancialStatements 2649
Compilation Report on Comparative Financial Statements When the
Prior Period Financial Statements Were Compiled By a Predecessor
Accountant and the Predecessor’s Report Is Not Presented
Accountant’s Compilation Report
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheet of XYZ Company as
of December 31, 20X2, and the related statements of income, retained earn-
ings, and cash ows for the year then ended. I (we) have not audited or re-
viewed the accompanying nancial statements and, accordingly, do not express
an opinion or provide any assurance about whether the nancial statements
are in accordance with accounting principles generally accepted in the United
States of America. The nancial statements of XYZ Company as of December
31, 20X1, were compiled by other accountants whose report dated February 1,
20X2 stated that they have not audited or reviewed the 20X1 nancial state-
ments and, accordingly, do not express an opinion or provide any assurance
about whether the nancial statements are in accordance with accounting prin-
ciples generally accepted in the United States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the 20X2 compilations in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certied Public Accountants. The objective of a compila-
tion is to assist management in presenting nancial information in the form of
nancial statements without undertaking to obtain or provide any assurance
that there are no material modications that should be made to the nancial
statements.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Compilation Report on Comparative Financial Statements When the
Predecessor Accountant’s Report Is Not Presented, and the Successor
Accountant Is Engaged to Compile the Restatement Adjustment(s)
Accountant’s Compilation Report
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. I (we) have not audited or reviewed the
accompanying nancial statements and, accordingly, do not express an opin-
ion or provide any assurance about whether the nancial statements are in
accordance with accounting principles generally accepted in the United States
of America. The nancial statements prior to adjustment of XYZ Company as
of and for the year ended December 31, 20X1, were compiled by other accoun-
tants whose report dated February 1, 20X2, stated that they have not audited
or reviewed the 20X1 nancial statements and, accordingly, do not express an
opinion or provide any assurance about whether the nancial statements are in
accordance with accounting principles generally accepted in the United States
of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
©2016, AICPA AR §200.38
2650 StatementsonStandardsforAccountingandReviewServices
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
I (We) also compiled the adjustments described in Note X that were applied to
restate the 20X1 nancial statements. I (we) have not audited or reviewed the
adjustments described in Note X that were applied to restate the 20X1 nancial
statements and, accordingly, do not express an opinion or provide any assur-
ance about whether the adjustments described in Note X that were applied to
restate the 20X1 nancial statements are in accordance with accounting prin-
ciples generally accepted in the United States of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Compilation Report on Comparative Financial Statements When the
Prior Period Financial Statements Were Audited
Accountant’s Compilation Report
2
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. I (we) have not audited or reviewed the
accompanying nancial statements and, accordingly, do not express an opinion
or provide any assurance about whether the nancial statements are in accor-
dance with accounting principles generally accepted in the United States of
America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
The 20X1 nancial statements were audited by me (us) (other accountants)
and I (we) (they) expressed an unmodied opinion on them in my (our) (their)
report dated March 1, 20X2, but I (we) (they) have not performed any auditing
procedures since that date.
[Signature of accounting rm or accountant, as appropriate]
[Date]
2
Alternatively, an accountant may use a title that does not describe the level of service such as
"Accountant's Report" or "Report of Certied Public Accountants" because the report refers to different
levels of service.
AR §200.38 ©2016, AICPA
ReportingonComparativeFinancialStatements 2651
Compilation Report on Comparative Financial Statements When Prior
Period Financial Statements That Omit Substantially All Disclosures
Have Been Compiled From Previously Reviewed Financial Statements
of the Same Period
Accountant’s Compilation Report
[Appropriate Salutation]
I (we) have compiled the accompanying balance sheets of XYZ Company as of
December 31, 20X2 and 20X1, and the related statements of income, retained
earnings, and cash ows for the years then ended. I (we) have not audited or re-
viewed the accompanying nancial statements and, accordingly, do not express
an opinion or provide any assurance about whether the nancial statements
are in accordance with accounting principles generally accepted in the United
States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the compilations in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certied Public Accountants. The objective of a compilation is to
assist management in presenting nancial information in the form of nancial
statements without undertaking to obtain or provide any assurance that there
are no material modications that should be made to the nancial statements.
Management has elected to omit substantially all of the disclosures required
by accounting principles generally accepted in the United States of America. If
the omitted disclosures were included in the nancial statements, they might
inuence the user's conclusions about the company's nancial position, results
of operations, and cash ows. Accordingly, the nancial statements are not de-
signed for those who are not informed about such matters.
The 20X1 nancial statements were compiled by me (us) from nancial state-
ments that did not omit substantially all of the disclosures required by account-
ing principles generally accepted in the United States of America and that I
(we) previously reviewed as indicated in my (our) report dated March 1, 20X2.
[Signature of accounting rm or accountant, as appropriate]
[Date]
[Paragraph added, December 2010, to reect presentation style and conforming
changes necessary due to the issuance of SSARS No. 19. Revised, December
2012, to reect conforming changes necessary due to the issuance of SAS Nos.
122–126.]
©2016, AICPA AR §200.38
2652 StatementsonStandardsforAccountingandReviewServices
.39
Exhibit B
Illustrative Review Reports on Comparative Financial
Statements
Review Report on Comparative Financial Statements When a Review
Has Been Performed for Both Periods
Independent Accountant’s Review Report
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheets of XYZ Company as of
December 31, 20X2 and 20X1, and the related statements of income, retained
earnings, and cash ows for the years then ended. A review includes primarily
applying analytical procedures to management's (owners') nancial data and
making inquiries of company management (owners). A review is substantially
less in scope than an audit, the objective of which is the expression of an opinion
regarding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the reviews in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
Based on my (our) reviews, I am (we are) not aware of any material modica-
tions that should be made to the accompanying nancial statements in order
for them to be in conformity with accounting principles generally accepted in
the United States of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Review Report on Comparative Financial Statements When the Finan-
cial Statements of the Current Period Have Been Reviewed and Those
of The Prior Period Have Been Compiled
Independent Accountant’s Review Report
1
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. A review includes primarily applying
analytical procedures to management's (owners') nancial data and making
1
Alternatively, an accountant may use a title that does not describe the level of service such as
"Accountant's Report" or "Report of Certied Public Accountants" because the report refers to different
levels of service.
AR §200.39 ©2016, AICPA
ReportingonComparativeFinancialStatements 2653
inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion re-
garding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the reviews in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
Based on my (our) reviews, I am (we are) not aware of any material modica-
tions that should be made to the 20X2 nancial statements in order for them
to be in conformity with accounting principles generally accepted in the United
States of America.
The accompanying 20X1 nancial statements of XYZ Company were compiled
by me (us). The objective of a compilation is to assist management in presenting
nancial information in the form of nancial statements without undertaking
to obtain or provide any assurance that there are no material modications that
should be made to the nancial statements. Accordingly, I (we) do not express
an opinion or provide any assurance about whether the nancial statements
are in accordance with accounting principles generally accepted in the United
States of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Review Report on Comparative Financial Statements When the Ac-
countant’s Report Includes a Changed Reference to a Departure From
Accounting Principles Generally Accepted in the United States Of
America
Independent Accountant’s Review Report
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheets of XYZ Company as of
December 31, 20X2 and 20X1, and the related statements of income, retained
earnings, and cash ows for the years then ended. A review includes primarily
applying analytical procedures to management's (owners') nancial data and
making inquiries of company management (owners). A review is substantially
less in scope than an audit, the objective of which is the expression of an opinion
regarding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the reviews in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
©2016, AICPA AR §200.39
2654 StatementsonStandardsforAccountingandReviewServices
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
In my (our) report dated March 1, 20X2, with respect to the 20X1 nancial
statements, we referred to a departure from accounting principles generally ac-
cepted in the United States of America because the company carried its land at
appraised values. As described in Note X, the Company has changed its method
of accounting for land and restated its 20X1 nancial statements to conform
with accounting principles generally accepted in the United States of America.
Accordingly, my (our) present statement on the 20X1 nancial statements, as
presented herein, that I am (we are) not aware of any material modications
that should be made to the accompanying nancial statements is different from
that expressed in our previous report.
Based on my (our) reviews, I am (we are) not aware of any material modica-
tions that should be made to the accompanying nancial statements in order
for them to be in conformity with accounting principles generally accepted in
the United States of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Review Report on Comparative Financial Statements When the Prior
Period Financial Statements Were Reviewed by a Predecessor Accoun-
tant, and the Predecessor’s Report Is Not Presented
Independent Accountant’s Review Report
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. A review includes primarily applying
analytical procedures to management's (owners') nancial data and making
inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion re-
garding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion. The nancial statements of XYZ Company as of December
31, 20X1, were reviewed by other accountants whose report dated February 1,
20X2, stated that based on their procedures, they are not aware of any material
modications that should be made to the nancial statements in order for them
to be in conformity with accounting principles generally accepted in the United
States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the review in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
Based on my (our) review, I am (we are) not aware of any material modications
that should be made to the 20X2 nancial statements in order for them to be in
AR §200.39 ©2016, AICPA
ReportingonComparativeFinancialStatements 2655
conformity with accounting principles generally accepted in the United States
of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
Review Report on Comparative Financial Statements When the Pre-
decessor Accountant’s Report Is Not Presented, and the Successor Ac-
countant Is Engaged to Review the Restatement Adjustments
Independent Accountant’s Review Report
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. A review includes primarily applying
analytical procedures to management's (owners') nancial data and making
inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion re-
garding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion. The nancial statements of XYZ Company as of December
31, 20X1 prior to adjustment were reviewed by other accountants whose re-
port dated February 1, 20X2, stated that based on their procedures, they are
not aware of any material modications that should be made to the nancial
statements in order for them to be in conformity with accounting principles
generally accepted in the United States of America.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the review in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
Based on my (our) review, I am (we are) not aware of any material modications
that should be made to the 20X2 nancial statements in order for them to be in
conformity with accounting principles generally accepted in the United States
of America.
I (We) also reviewed the adjustments described in Note X that were applied
to restate the 20X1 nancial statements. Based on my (our) review, I am (we
are) not aware of any material modications that should be made to the ad-
justments described in Note X that were applied to restate the 20X1 nancial
statements in order for them to be in conformity with accounting principles
generally accepted in the United States of America.
[Signature of accounting rm or accountant, as appropriate]
[Date]
©2016, AICPA AR §200.39
2656 StatementsonStandardsforAccountingandReviewServices
Review Report on Comparative Financial Statements When the Prior
Period Financial Statements Were Audited
Independent Accountant’s Review Report
2
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash ows for the year then ended. A review includes primarily applying
analytical procedures to management's (owners') nancial data and making
inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion re-
garding the nancial statements as a whole. Accordingly, I (we) do not express
such an opinion.
Management (owners) is (are) responsible for the preparation and fair pre-
sentation of the nancial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, imple-
menting, and maintaining internal control relevant to the preparation and fair
presentation of the nancial statements.
My (our) responsibility is to conduct the review in accordance with Statements
on Standards for Accounting and Review Services issued by the American In-
stitute of Certied Public Accountants. Those standards require me (us) to per-
form procedures to obtain limited assurance that there are no material modi-
cations that should be made to the nancial statements. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our report.
Based on my (our) review, I am (we are) not aware of any material modications
that should be made to the 20X2 nancial statements in order for them to be in
conformity with accounting principles generally accepted in the United States
of America.
The 20X1 nancial statements were audited by me (us) (other accountants)
and I (we) (they) expressed an unmodied opinion on them in my (our) (their)
report dated March 1, 20X2, but I (we) (they) have not performed any auditing
procedures since that date.
[Paragraph added, December 2010, to reect presentation style and conforming
changes necessary due to the issuance of SSARS No. 19. Revised, December
2012, to reect conforming changes necessary due to the issuance of SAS Nos.
122–126.]
2
Alternatively, an accountant may use a title that does not describe the level of service such as
"Accountant's Report" or "Report of Certied Public Accountants" because the report refers to different
levels of service.
AR §200.39 ©2016, AICPA
