Codification of Statements on Standards for Accounting and Review Services Numbers 21 to 24 As of May 2018 Codification of Statements on Standards for Accounting and Review Services Numbers 21 to 24 As of May 2018 1805-0504 Copyright © 2018 by American Institute of Certified Public Accountants. All rights reserved. Reprinted from AICPA Professional Standards Accounting and Review Services Parts (as of May 2018) For information about the procedure for requesting permission to make copies of any part of this work, please e-mail [email protected] with your request. Otherwise, requests should be written and mailed to Permissions Department, 220 Leigh Farm Road, Durham, NC 27707-8110. 1 2 3 4 5 6 7 8 9 0 PrP 1 9 8 ISBN 978-1-94830-641-6 (print) ISBN 978-1-94830-642-3 (ePub) iii PREFACE Thispublication,issuedbytheAccountingandReviewServicesCommittee (ARSC),isacodificationofStatementsonStandardsforAccountingandReview Services (SSARSs), and the related interpretations of SSARSs applicable to performingengagementstopreparefinancialstatementsandperformingand reportingoncompilationandreviewengagements. SSARSs are issued by ARSC, the senior committee of the AICPA desig- nated to promulgate standards under the "General Standards Rule" (ET sec. 1.310.001)andthe"ComplianceWithStandardsRule"(ETsec.1.300.001) of theAICPACodeofConductwithrespecttounauditedfinancialstatementsor other unaudited financial information of an entity that is not required to file financial statements with a regulatory agency in connection with the sale or tradingofitssecuritiesinapublicmarket.The"ComplianceWithStandards Rule"requiresanAICPAmemberwhoperformsengagementstopreparefinan- cialstatements,compilationsorreviewstocomplywithstandardspromulgated bytheARSC.Pursuanttoparagraph.15ofAR-Csection60,GeneralPrinciples for Engagements Performed in Accordance With Statements on Standards for AccountingandReviewServices,anaccountantmustcomplywithanuncondi- tionalrequirementinallcasesinwhichthecircumstancesexisttowhichthe unconditionalrequirementisrelevant.SSARSsusetheword"must"toindicate anunconditionalrequirement.Paragraph.15ofAR-Csection60furtherstates thatanaccountantmustcomplywithapresumptivelymandatoryrequirement in all cases in which such a requirement is relevant, except in rare circum- stances.SSARSsusetheword"should"toindicateapresumptivelymandatory requirement. Paragraph .06 of AR-C section 60 defines interpretative publications as interpretations of SSARSs; exhibits to SSARSs; the AICPA Guide, Compi- lation and Review Engagements, guidance on reviews, compilations, and en- gagements to prepare financial statements included in AICPA Audit and Ac- counting Guides;and AICPA Statements of Position,to the extent that those statementsareapplicabletosuchengagements.Interpretativepublicationsare notSSARSs.Interpretativepublicationsarerecommendationsontheapplica- tionofSSARSsinspecificcircumstances,includingengagementsforentitiesin specialized industries.An interpretative publications is issued under the au- thorityoftheARSCafterallARSCmembershavebeenprovidedanopportunity to consider and comment on whether the proposed interpretative publication isconsistentwithSSARSs.Pursuanttoparagraph.17ofAR-Csection60,the accountantisrequiredtoconsiderapplicableinterpretativepublicationsinthe performanceofanengagementinaccordancewithSSARSs. ACCOUNTINGANDREVIEW SERVICESCOMMITTEE MikeFleming,Chair MichaelP.Glynn,SeniorTechnicalManager— AuditandAttestStandards ©2018, AICPA What’sNewinThisEdition v WHAT’S NEW IN THIS EDITION STANDARDSRECENTLYISSUED Statement Title IssueDate Section StatementonStandards OmnibusStatement May2018 forAccountingand onStandardsfor ReviewServices Accountingand (SSARS)No.24 Review Services—2018 ADDITIONALCHANGES Section Addition AR-C60A,GeneralPrinciplesfor Additionofsectionasaresultof EngagementsPerformedin theissuanceofSSARSNo.24. AccordanceWithStatementson StandardsforAccountingandReview Services AR-C90A,ReviewofFinancial Additionofsectionasaresultof Statements theissuanceofSSARSNo.24. AR-C100,Special Additionofsectionasaresultof Considerations—International theissuanceofSSARSNo.24. ReportingIssues Section Change AR-C60,GeneralPrinciplesfor AmendedbySSARSNo.24. EngagementsPerformedin AccordanceWithStatementson StandardsforAccountingandReview Services AR-C90,ReviewofFinancial AmendedbySSARSNo.24. Statements ©2018, AICPA TableofContents vii TABLE OF CONTENTS Section Page ... How This Publication Is Organized.......................... 1 STATEMENTSONSTANDARDSFORACCOUNTINGAND REVIEWSERVICES(Clarified)[AR-C] AR-C Cross-References to SSARSs........................... 3 AR-C Introduction........................................... 5 Statements on Standards for Accounting and Review Services (Clarified)..................................... 15 60 General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services........................ 27 60A General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services..................... 47 70 Preparation of Financial Statements......................... 65 80 Compilation Engagements.................................. 79 90 Review of Financial Statements.............................. 115 90A Review of Financial Statements.............................. 199 9090 Review of Financial Statements: Accounting and Review Services Interpretation of AR-C Section 90............... 275 100 Special Considerations—International Reporting Issues...... 277 120 Compilation of Pro Forma Financial Information............. 289 ... AR-C Appendixes........................................... 303 ... AR-C Topical Index......................................... 307 ©2018, AICPA Contents