Accounting and Review Services Committee issues new standards, interpretation.

• Position: Accounting & auditing news

The AICPA's Accounting and Review Services Committee has issued Statement on Standards for Accounting and Review Services No. 10, Performance of Review Engagements (No. 060663CPA06), and Statement on Standards for Accounting and Review Services No. 11, Standards for Accounting and Review Services (No. 060710CPA06).

SSARS No. 10 amends SSARS No. 1 by expanding on previously provided guidance on analytical procedures, inquiries and other review procedures; by providing inquiries regarding fraud in a review engagement; by requiring representations regarding fraud in the management representation letter; and by clarifying and providing guidance regarding documentation in a review engagement. The new standard is effective for reviews of financial statements for periods ending on or after Dec. 15, 2004.

SSARS No. 11 establishes a SSARS hierarchy. The statement, effective upon issuance, is beneficial to practitioners by making them aware of the appropriate literature and the various publications' standing in the SSARS hierarchy. In addition, it addresses a technical correction to SSARS No. 2, Reporting on Comparative Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 200). The statement amends SSARS No. 2 (AR sec. 300.27, footnote 9) to conform with the guidance found in Statement on Auditing Standards No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards, vol. 1, AU sec. 508.74, footnote 29), as amended, which states that a successor auditor may name the predecessor auditor if the predecessor auditor's practice was acquired by, or merged with, that of the successor auditor.

To obtain copies of SSARS 10 or 11...