ASB Proposes SAS on Restricted-Use Reports


Reports for Specified Parties
The American Institute of CPAs auditing standards board issued a proposed Statement on Auditing Standards, Restricting the Use of an Auditors Report , that provides guidance to auditors on restricted-use reports. A reports use should be restricted to specified parties if

  • The subject matter of the report, or the presentation being reported on, is based on measurement or disclosure criteria contained in contractual agreements or regulatory provisions that are not in accordance with generally accepted accounting principles or an other comprehensive basis of accounting.

  • The report is based on procedures specifically designed and performed to satisfy the needs of parties who accept responsibility for the sufficiency of the procedures.

  • The report is issued as a by- product of a financial statement audit and not to provide assurance on the specific subject matter of the report. Examples are reports issued under SAS no. 60, Communication of Internal Control Related Matters Noted in an Audit , SAS no. 61, Communications With Audit Committees , and paragraphs 19-21 of SAS no. 62, Special Reports .

The proposed SAS will help auditors determine whether an engagement requires a restricted-use report and how to draft that report, AICPA Technical Manager Judith Sherinsky told the Journal . If approved, the statement will be applicable for reports issued after June 30, 1998, with early application permitted. Copies of the ED are available from the AICPA and may be downloaded from AICPA Online, http://www.aicpa.org. Comments are due in March.



 

©1998 AICPA

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.