Feb 11, 2020 Show
On February 11, 2020, the American Institute of Certified Public Accountants's (AICPA) Accounting and Review Services Committee issued Statement on Standards for Accounting and Review Services (SSARS) No. 25, "Materiality in a Review of Financial Statements and Adverse Conclusions". SSARS 25 (1) contains an explicit requirement related to determining materiality, (2) allows for the expression of an adverse review conclusion when financial statements are materially and pervasively misstated, and (3) requires a statement regarding independence in the accountant’s review report. In addition, the SSARS converges AR-C Section 90, “Review of Financial Statements,” with International Standard for Review Engagements 2400 (revised), Engagements to Review Historical Financial Statements. Review the SSARS and At a glance overview on the AICPA’s website. Related news
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Correction list for hyphenationThese words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line. Select language: In recent years several new reporting standards have been issued that are soon to be effective and will have a significant impact on practitioners during the upcoming busy season. Below is a summary of the most significant changes to be aware of as you plan and perform your upcoming engagements. Audit engagementsStatement on Auditing Standards (SAS) 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, was issued in May 2019. Notable changes within this SAS include:
Subsequent to issuance of SAS 134, SAS 136, SAS 137, SAS 138, SAS 139, and SAS 140 were issued to amend certain auditing standards to conform with SAS 134 and revise other aspects of auditor reporting responsibilities and audit reports. SAS 141, Amendment to the Effective Dates of SAS Nos. 134-140, extended the effective date of these SASs to engagements performed for periods ending on or after December 15, 2021, with early adoption permitted. Compilation and review engagementsStatement on Standards for Accounting and Review Services (SSARS) No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions, was issued in February 2020 and is effective for engagements performed for periods ending on or after December 15, 2021, with early adoption permitted. Notable changes within SSARS 25 for review engagements include:
SSARS 25 does not change compilation reporting requirements, except for reports on financial statements prepared using the contractual or regulatory basis of accounting. PPC’s Guide to Auditor’s Reports provides extensive guidance and numerous illustrative reports concerning the changes made by SAS 134 along with other subsequently issued standards. PPC’s Guide to Compilation and Review Engagements provides extensive guidance and illustrative reports concerning the changes made by SSARS No. 25. Other Thomson Reuters products to aid your audit, review, and compilation engagements include: PPC’s Guide to GAAS, PPC’s Guide to Audits of Nonpublic Companies, PPC’s Guide to Quality Control, PPC’s Guide to Compilation and Review Engagements, and PPC’s Guide to Quality Control – Compilation and Review. Learn more about Thomson Reuters tax and accounting tools, resources, and products. What is the new required language to be included within the accountant's responsibility section of the review report under Ssars 25?SSARS 25 includes a requirement that the accountant's review report include a statement that the accountant is required to be independent of the entity and to meet the accountant's other ethical responsibilities, in accordance with the relevant ethical requirements relating to the review.
What management inquiries are required under Ssars 25?SSARS 25 adds new inquiries of management including:. Material commitments, contractual obligations, or contingencies.. Material nonmonetary transactions.. Significant changes in the business activities or operations.. Significant changes to the terms of contracts that materially affect the financial statements.. What is AR C 60?General Principles for Engagements. Performed in Accordance With Statements. on Standards for Accounting. and Review Services.
What does AR C stand for in accounting?100.1 The Accounting and Review Services Committee (ARSC) is a senior technical committee of. the American Institute of Certified Public Accountants (AICPA).
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