AICPA Issues SSARS on Materiality
February 11, 2020
The AICPA’s Accounting and Review Services Committee has issued Statement on Standards for Accounting and Review Services (SSARS) No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions.
SSARS 25 (1) contains an explicit requirement related to determining materiality, (2) allows for the expression of an adverse review conclusion when financial statements are materially and pervasively misstated, and (3) requires a statement regarding independence in the accountant’s review report. In addition, the SSARS converges AR-C Section 90, “Review of Financial Statements,” with International Standard for Review Engagements 2400 (revised), Engagements to Review Historical Financial Statements.
For more information, see the At a glance overview on the AICPA’s Web site.