Improving the SSARS engagement review

Practitioners face a continuing challenge with Statement on Standards for Accounting and Review Services (SSARS) review engagements because a limited level of assurance is provided in such engagements. There is some guidance provided in SSARS number one, but it is still a matter of professional judg...

Full description

Journal Title: The CPA Journal Vol. 53; no. 9; pp. 12 - 16
Author: Wayne Bremser
Format: Article
Language: English
Published: September 1983
Subjects:
Online Access: Full Text
Summary: Practitioners face a continuing challenge with Statement on Standards for Accounting and Review Services (SSARS) review engagements because a limited level of assurance is provided in such engagements. There is some guidance provided in SSARS number one, but it is still a matter of professional judgment whether an adequate basis for the limited assurance has been attained. Many of the steps in a SSARS review engagement require professional judgment to interpret the responses to inquiries. Firms must design their quality control systems to provide for adequate supervisory review. There is a useful engagement review procedure for SSARS reviews that involves a checklist to guide the review process. The checklist provides 3 levels of review: 1. the in-charge accountant review, 2. the primary review, and 3. the 2nd review. The first level is basically a self-review and the 2nd level is performed to decide whether the work performed on the financial statements is an adequate basis for expressing the limited assurance given in a SSARS review report. The 3rd level of review is a cold review of the engagement. This review model system should be adapted to the individual firm.
ISSN: 0732-8435