United States

Proposed revisions to SSARS


On July 19, the AICPA Accounting and Review Services Committee issued a proposed Statement on Standards for Accounting and Review Services (SSARS), Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks. This Exposure Draft includes the following proposed revisions, among several others:

  • Revising the definitions of the following terms so as to be consistent with the definitions in Statements on Auditing Standards: financial statements, applicable financial reporting framework, designated accounting standard-setter, general purpose financial statements, general purpose framework, special purpose financial statements and special purpose framework
  • Adding a requirement for the accountant to inform management of the reasons for withdrawal from a preparation engagement
  • A revised definition of limited assurance in AR-C section 90 as follows: “The level of assurance obtained at which the risk that the accountant expresses an inappropriate conclusion is greater than it is in an audit engagement but is at an acceptably low level in the circumstances of the engagement as the basis for expressing a conclusion about whether the accountant is aware of any material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework.”
  • Adding an explicit requirement in AR-C section 90 for the accountant to determine materiality for the financial statements as a whole and to apply this materiality in designing the procedures and evaluating the results obtained from those procedures
  • Adding to AR-C section 90 the ability for the accountant to express an adverse conclusion when he or she determines or is otherwise aware, that the financial statements are materially misstated and the effects of the matter or matters are both material and pervasive to the financial statements.


If issued as final, the revised AR-C sections would be effective for financial statements for periods ending on or after June 15, 2021. The Exposure Draft is available for comment until September 20, 2019.