Assembly of financial statements for internal use only

The latest skirmish in the battle over accountants' association with and reporting on financial statements of nonpublic entities involves the AICPA Accounting and Review Services Committee's (ARSC) exposure draft. This proposal provides for an exemption from Statement on Standards for Accounting and Review Services (SSARS) No. 1 for financial statements assembled for internal use only. This exposure draft proposes a new type of allowed non-association with financial statements, known as an assembly. This new level of service would allow accountants to assist clients in preparing internal-use-only financial statements without the need to report on them.