The AICPA Accounting and Review Services Committee (ARSC) recently issued an amendment clarifying that a CPA preparing financial statements as part of a consulting services engagement performed following CS Section 100, Consulting Services: Definitions and Standards, is not required to apply AR-C Section 70, Preparation of Financial Statements.
Applicability of AR-C Section 70 to Financial Statements Prepared as Part of a Consulting Services Engagement will be effective for preparing financial statements for periods ending on or after Dec. 15, 2026. The ARSC expects to publish the Statement on Standards for Accounting and Review Services in early April.
“The practical difference for CPAs is that if they perform the engagement outside of AR-C Section 70, the quality management standards do not apply, and the engagements are not included in the population subject to peer review,” said Mike Glynn, CPA, CGMA, AICPA associate director–Audit & Attest Standards and ARSC staff liaison.