|ASB Issues SSAE No. 18 and Completes Attestation Clarity Project
The AICPA’s Auditing Standards Board (ASB) has completed its clarity project with the issuance of Statement on Standards for Attestation Engagements (SSAE) No. 18, Attestation Standards: Clarification and Recodification, which clarifies the SSAEs (also known as the attestation standards).
The attestation standards establish requirements for performing and reporting on examination, review, and agreed-upon procedures engagements that enable practitioners to report on subject matter other than historical financial statements, for example, an entity’s compliance with laws or regulations, the effectiveness of an entity’s controls over the security of a system, and the fairness of the presentation of a statement of greenhouse gas emissions.
SSAE No. 18 is effective for practitioners’ reports dated on or after May 1, 2017.
Learn more about the AICPA Attest Clarity Project.
SAS No. 131 Issued to Clarify Jurisdictional Issues in Auditor Reporting Requirements
The Auditing Standards Board has issued SAS No. 131, Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards, AU-C sec. 700), to clarify the format of the auditor’s report that should be issued when the auditor conducts an audit in accordance the standards of the PCAOB, but the audit is not under the jurisdiction of the PCAOB.
The amendments are effective for audits of financial statements for periods ending on or after June 15, 2016; however, application of the SAS before the effective date is permitted.
Access the Executive Summary.
For more information visit the AICPA's Auditing Clarity Project area.
Illustrative Service Auditor’s Report In Accordance With AT 801 and ISAE 3402
The Service Organizations Task Force of the AICPA’s Auditing Standards Board has developed an illustrative service auditor’s report for use when a service auditor is reporting on a description of a service organization’s system and the suitability of the design and operating effectiveness of controls (type 2 report) under both AT section 801, Reporting on Controls at a Service Organization (AICPA, Professional Standards), and International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization. The illustrative report is intended for reports dated on or after December 15, 2015.
ARSC Issues Proposed Standards on Compilations of Prospective and Pro Forma Financial Information
The Accounting and Review Services Committee has issued three proposed Statements on Standards for Accounting and Review Services for comment through May 6, 2016. Proposed SSARS Compilation of Prospective Financial Information would move and change some of the requirements and guidance for compilations of prospective financial information from the Statements on Standards for Attestation Engagements to the SSARSs literature. Proposed SSARS Compilation of Pro Forma Financial Information would clarify and supersede AR section 120 of the same title. Proposed SSARS Omnibus Statement on Standards for Accounting and Review Services—2016 would amend various existing SSARSs literature to incorporate the concepts and provisions of the first two proposals as well as to require that the accountant follow AR-C section 70, Preparation of Financial Statements, when engaged to prepare prospective financial information but not engaged to perform a compilation, examination, or agreed-upon procedures engagement with respect to that prospective financial information.
ASB Issues Statement on Auditing Standards No. 130
The AICPA Auditing Standards Board has issued SAS No. 130, An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements, to establish requirements and provide guidance that applies only when an auditor is engaged to perform an audit of internal control over financial reporting (ICFR) that is integrated with an audit of financial statements (integrated audit). SAS No. 130 becomes effective for integrated audits for periods ending on or after December 15, 2016. At that time, SSAE No. 15, An Examination of an Entity's Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, and its related attestation interpretation, "Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act" (AICPA, Professional Standards, AT sec. 501 and 9501), will be withdrawn, and amendments to various sections in SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, will take effect. The ASB will consider developing an attestation standard addressing examinations of internal control other than ICFR that is integrated with an audit of financial statements at a later date.