Wiley CPAexcel Exam Review 2014 Study Guide, Auditing and Attestation

Outlines of Professional Standards

This section presents outlines of (1) the Statements on Standards for Attestation Engagements, (2) the Statements on Auditing Standards, and (3) the Statements on Standards for Accounting and Review Services. When codified sequence differs from chronological sequence, we have presented the outlines in codified sequence. Study these outlines in conjunction with the related topical material (e.g., ethics, reports, etc.).

STATEMENTS ON STANDARDS FOR ATTESTATION ENGAGEMENTS

Overview. The Statements on Standards for Attestation Engagements are issued by three organizations: (1) the Auditing Standards Board, (2) the Accounting and Review Services Committee, and (3) the Management Advisory Services Executive Committee.

AT 20 Defining Professional Requirements in Statements on Standards for Attestation Engagements (SSAE 13)—This section sets forth the meaning of terms in SSAEs. Similar to Statements on Auditing Standards, SSAEs includes the following type of requirements:

A. Unconditional requirements—The accountant is required to comply in all cases in which the circumstances exist. SSAEs use the words must or is required to indicate an unconditional requirement.

B. Presumptively mandatory requirements—The accountant is required to comply in all cases in which the circumstances exist. However, in rare cases the accountant may depart provided that the accountant documents the justification and how alternative procedures performed were adequate. SSAEs ...