Proposed SSARS: Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks

Proposed SSARS: Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks

The AICPA’s Accounting and Review Services Committee has issued a proposed SSARS, Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks. The proposed amendments are intended to more closely align SSARS with International Standard on Review Engagements and as well as consider the relationship with the SASes. The proposal includes the requirement for the accountant to determine materiality in reviews of financial statements, permits the expression of an adverse conclusion, and also addresses terminology throughout the SSARS. The revisions would be effective for engagements performed in accordance with SSARSs on financial statements for periods ending on or after June 15, 2021. Comments are due by September 20, 2019.