Two proposed SSARS, Performance of Review Engagements and Standards for Accounting and Review Services, exposed for comment.The AICPA's Accounting and Review Services Committee has issued two exposure drafts for comment. One of them, the proposed Statement on Standards for Accounting and Review Services Performance of Review Engagements would revise SSARS SSARS Statements on Standards for Accounting and Review Services No. 1 to expand on previously provided guidance on analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit 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 Dec. 15, 2004. Standards for Accounting and Review Services, the other proposed statement, establishes a SSARS hierarchy. In addition, it addresses a technical correction technical correction A temporary downturn in the price of a stock or in the market itself following a period of extensive price increases. A technical correction takes place in a generally increasing market when there is no particular reason that the to SSARS No. 2, Reporting on Comparative Financial Statements (AICPA AICPA See American Institute of Certified Public Accountants (AICPA). , Professional Standards, vol. 2, AR sec. 200). The proposed statement will revise SSARS No. 2 (AR sec. 200.17, footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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. This proposed statement would be effective upon issuance. Comments on each exposure draft are due Apr. 11. Copies of the EDs may be obtained from our Web site: http://www.aicpa.org/members/ div/auditstd/drafts.htm |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion