Academic journal article Journal of Accountancy

ASB Finalizes Assurance-Related Statement

Academic journal article Journal of Accountancy

ASB Finalizes Assurance-Related Statement

Article excerpt

The need for assurance in areas outside of financial statements is cropping up everywhere. To increase the scope of attestation engagements to financial information outside the financial statements, such as to management's discussion and analysis (MD&A), the ASB approved a new statement on standards for attestation engagements. SSAE no. 8 provides guidance for the examination or review of MD&A presentations prepared according to SEC rules and regulations. The board also issued a new SAS that amends SAS no. 72. (See "Proposed Attestation Standard on MD&A," JofA, Apr.97, page 13.)

The final SSAE, like its ED, permits two levels of service--examination and review--although use of the review report is restricted to specified parties and is not appropriate for filing with the SEC. The ASB also concluded in the development of the final SSAE that an MD&A presentation is a "discrete" single-year presentation that includes some comparative information but is not a comparative presentation. Therefore, the practitioner should not divide responsibility with a predecessor when performing this type of engagement. However, a practitioner may divide responsibility with another practitioner who has examined or reviewed the separate MD&A presentation of a component of the reporting entity. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.