Section 193A.13.7. Compilation.

         13.7(1) Who can perform. Only a CPA licensed under Iowa Code section 542.6 or 542.19, an LPA licensed under Iowa Code section 542.8, or a CPA exercising a practice privilege under Iowa Code section 542.20 shall issue a report in standard form upon a compilation of financial information or otherwise provide compilation services in Iowa or for a client with a home office in Iowa. (Refer to rule 193A—6.4(542).)

         13.7(2) Peer review. All individuals described in 193A—subrule 6.4(1) shall satisfy peer review requirements, individually or through a peer review of a CPA or LPA firm holding a permit to practice pursuant to Iowa Code section 542.7 or 542.8 or a CPA firm exercising a practice privilege under Iowa Code section 542.20.

         13.7(3) Mandatory financial statement presentation continuing professional education. In each renewal period in which compilation reports are issued, every CPA certificate holder or LPA license holder who is responsible for supervising compilation services or who signs or authorizes someone to sign the accountant’s compilation report on the financial statements on behalf of a firm shall complete, as a condition of certificate or license renewal, a minimum of eight hours of continuing education devoted to financial statement presentation every three years, such as courses covering the Statements on Standards for Accounting and Review Services (SSARS) and accounting and auditing updates. This requirement is more fully described in 193A—subrule 10.7(1).

         13.7(4) Compilation standards.

            a.               A compilation shall be performed by a person or persons having adequate technical training and proficiency to compile prospective financial statements.

            b.               Due professional care shall be exercised in the performance of the compilation and the preparation of the report.

            c.               The work shall be adequately planned, and assistants, if any, shall be properly supervised.

            d.               Applicable compilation procedures shall be performed as a basis for reporting on the compiled financial statements.

            e.               The report based on the licensee’s compilation shall include the following:

             (1)             An identification of the financial statements presented by the responsible party;

             (2)             A statement that the licensee has compiled the financial statements in accordance with standards established by the American Institute of Certified Public Accountants;

             (3)             The manual or printed signature of the licensee’s firm;

             (4)             The date of the compilation report.

         13.7(5) Compilation standards for prospective financial statements.

            a.               Applicable compilation procedures shall be performed as a basis for reporting on the compiled prospective financial statements.

            b.               In addition to the four items included in paragraph 13.7(4)“e,” the report based on the licensee’s compilation shall include the following:

             (1)             A statement that a compilation is limited in scope and does not enable the licensee to express an opinion or any other form of assurance on the prospective financial statements or the assumptions;

             (2)             A caveat that the prospective results may not be achieved;

             (3)             A statement that the licensee assumes no responsibility to update the report for events and circumstances occurring after the date of the report.

[ARC 9003B, IAB 8/11/10, effective 1/1/11]