AICPA Exposes Two Proposed Statements on Standards for Accounting and Review Services

The AICPA’s Accounting and Review Services Committee (ARSC) has issued two exposure drafts of proposed Statements on Standards for Accounting and Review Services (SSARS). One of the proposed Statements, Standards for Accounting and Review Services establishes a SSARS hierarchy.

In addition, the proposed Statement addresses a technical correction to SSARS No. 2, Reporting on Comparative Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 200). The proposed Statement will revise SSARS No. 2 (AR sec. 300.27, footnote 9) to conform with the guidance found in Statement on Auditing Standards No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards, vol. 1, AU sec. 508.74, footnote 29), as amended, which states that a successor auditor may name the predecessor auditor if the predecessor auditor’s practice was acquired by, or merged with, that of the successor auditor. The proposed Statement would be effective upon issuance.

Performance of Review Engagements, the other proposed Statement, would revise SSARS No. 1 to expand on previously provided guidance on analytical procedures, inquiries, and other review procedures; provide inquiries regarding fraud in a review engagement and require representations regarding fraud in the management representation letter; and clarify and provide guidance regarding workpaper documentation in a review engagement. The proposed Statement would be effective for reviews of financial statements for periods ending on or after December 15, 2004.

Each exposure draft is available to download as a PDF file from the AICPA’s website.

The Adobe Acrobat Reader is needed to view a file in PDF format. The reader is available as a free download from the Adobe Web site.

Download the Statement document now.

Comments should be sent via electronic mail to Michael Glynn at mglynn@aicpa.org and received no later than April 11, 2004. To facilitate the ARSC’s consideration of responses, comments should refer to specific paragraphs and include supporting reasons for each suggestion or comment. Comments will become part of the public record of the AICPA and will be available for public inspection at the offices of the AICPA after May 11, 2004, for one year.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.