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.