|Original Pronouncement||Statements on Standards for Attestation Engagements (SSAE) 10, Attestation Standards: Revision and Recodification.|
|Effective Date||This statement currently is effective.|
|Applicability||When a practitioner is engaged by a public entity that prepares Management’s Discussion and Analysis (MD&A) in accordance with the rules and regulations adopted by the Securities and Exchange Commission (SEC) (or a nonpublic entity following the same requirements) to either perform an examination or review of MD&A. A practitioner engaged to perform agreed-upon procedures on MD&A should follow the guidance in Section 201.|
MD&A. Management’s Discussion and Analysis of Financial Condition and Results of Operations adopted by the SEC and found in Item 303 of Regulation S-K, as interpreted by Financial Reporting Release (FRR) 36.
The SEC adopted requirements for MD&A in 1974 to have management provide a narrative explanation of the financial statements. The idea was to allow the user to see the company’s financial position and operating results through management’s eyes.
Two levels of service are possible—an examination or a review. A review report is restricted as to use and is not intended to be filed with the SEC. An examination report is intended for general use, but at this stage, whether there will be a significant demand ...