The Accounting and Review Services Committee of the American Institute of Certified Public Accountants has issued Statement on Standards for Accounting and Review Services (SSARS) No. 17, Omnibus Statement on Standards for Accounting and Review Services - 2008. Among other provisions, this statement:
- Replaces the term “nonpublic entity” with the term “nonissuer” to conform to the terminology used by other standard setters.
- Clearly indicates the differences between compilation, review, and audit engagements and revises the illustrative arrangement letters for compilation and review engagements accordingly.
- States that, in a review engagement, the accountant must apply analytical procedures to the financial statements; make inquires of management or other company personnel, or both; and obtain representations from management for all financial statements and periods covered by the accountant’s review report.
- Revises the definition of “third parties” to clarify that the phrase, “who are knowledgeable about the nature of the procedures applied and the basis of accounting and assumptions used in the preparation of financial statements” applies to “members of management,” and also introduces definitions of “those charged with governance” and “management.”
- States that management’s written representations should be made as of the date of the accountant’s review report.
- Provides guidance with respect to an accountant’s consideration of the entity’s ability to continue as a going concern during the performance of compilation or review procedures.
- Provides guidance with respect to an accountant’s consideration of subsequent events in a compilation or review engagement.
- Incorporates guidance with respect to analytical procedures in a review engagement.
SSARS No. 17 is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2008.
|
