AICPA issues fundamental change to Compilation and Review standard.

PositionCommittee on Taxation

The recently revised SSARS No. 19. Compilation and Review Engagements, encompasses some fundamental changes, including:

* The introduction of the term "review evidence" to the review literature by clarifying that a review requires the accumulation of review evidence that will provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statements for the statements to be in accordance with the applicable financial reporting framework. The standard states analytical procedures and inquiries will ordinarily provide the appropriate evidence but that the accountant should use professional judgment in determining the specific procedures.

* A discussion of materiality in the context of a review engagement.

* A requirement that...

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