Convergence with international standards sought for SSARSs

The proposal is relevant to materiality and other concepts.

In an effort to promote convergence with international standards, the AICPA Accounting and Review Services Committee (ARSC) recently proposed changes to standards for review services.

ARSC believes that it is important for the Statements on Standards for Accounting and Review Services (SSARSs) to be as closely converged as possible with International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements.

This convergence is designed to facilitate the accountant's ability to perform and report on engagements with both sets of standards and reduce confusion regarding the level of assurance obtained in accordance with either set of standards.

ARSC issued an exposure draft of Proposed Statement on Standards for Accounting and Review Services, Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks.

If approved, the changes would amend AR-C sections 60, 70, 80, and 90 in the AICPA Professional Standards. The proposal is intended to also better align certain concepts such as materiality in the SSARSs with the concepts used in audit engagements.

Comments are due Sept. 20 by email to Mike.Glynn@aicpa-cima.com.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.