Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AR-C 90 Review of Financial Statements

Original Pronouncement

Statement on Standards for Accounting and Review Services (SSARSs) 21 and 23.

Objectives and Limitations of Review Engagements

It is important to note that the requirements in AR-C 60 apply to all SSARS engagements, including review engagements. In addition to the guidance in this chapter, readers should apply the requirements in the chapter on Section 60 to review engagements.

The accountant's objective when performing a review of financial statements is to obtain limited assurance as a basis for reporting whether the accountant is aware of any material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework, primarily through the performance of inquiry and analytical procedures.

(AR-C 90.04)

Applicability

AR-C 90 applies to reviews of financial statements, and when the accountant is engaged to review other historical financial information, excluding pro forma financial information, those should be performed using the requirements in Statements on Standards for Attestation Engagements. (AR-C 90-01) Certain reviews of interim financial information are out of the scope of the SSARS. This Section does not apply to the review of interim financial statements in the following situations:

1. The entity's latest annual financial statements were audited by the accountant or a predecessor.
2. The accountant either has been engaged to audit the ...