Codification of Statements on Standards for Attestation Engagements: 2020

545 Pages·2020·3.534 MB·English

by  Aicpa

Codification of
Statements on Standards
for Attestation Engagements
Number 20
As of January 2020
2001-27683
Copyright © 2020 by
American Institute of Certified Public Accountants, Inc. All rights reserved.
Reprinted from
AICPA Professional Standards
U.S. Attestation Standards—AICPA (Clarified)
(as of January 2020)
For information about the procedure for requesting permission to make copies of
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iii
PREFACE
This publication,issued by the Accounting and Review Services Commit-
teeandtheAuditingStandardsBoard(ASB),isacodificationofStatementson
StandardsforAttestationEngagements(SSAEs)andtherelatedattestationin-
terpretationsapplicabletothepreparationandissuanceofattestationreports
forallnonissuers.AnonissuerisanyentitynotsubjecttotheSarbanes-Oxley
Actof2002ortherulesoftheSEC.
Thispublicationcontainsthecodifiedattestationstandardsissuedthrough
SSAENo.20,AmendmentstotheDescriptionoftheConceptofMateriality,and
relatedattestationinterpretations.Supersededportionshavebeendeletedand
allapplicableamendmentshavebeenincluded.
SSAEs are issued by senior committees of the AICPA designated to issue
pronouncements on attestation matters applicable to the preparation and is-
suanceofattestationreportsforentitiesthatarenonissuers.The"Compliance
With Standards Rule" (ET sec.1.310.001) of the AICPA Code of Professional
Conduct requires an AICPA member performing an attestation engagement
foranonissuer(apractitioner)tocomplywithstandardspromulgatedbysuch
seniorcommittees.Apractitionermustcomplywithanunconditionalrequire-
ment in all cases in which such requirement is relevant. A practitioner also
should comply with a presumptively mandatory requirement in all cases in
whichsuchrequirementisrelevant;however,inrarecircumstances,thepracti-
tionermaydepartfromapresumptivelymandatoryrequirementprovidedthat
thepractitionerdocumentsthejustificationforthedepartureandhowtheal-
ternativeproceduresperformedinthecircumstancesweresufficienttoachieve
theintentofthatrequirement.
ExhibitsandinterpretationstoSSAEsareinterpretivepublications,asde-
fined in AT-C section 105,Concepts Common to All Attestation Engagements.
AT-Csection105requiresthepractitionertoconsiderapplicableinterpretive
publicationsinplanningandperforminganattestationengagement.Interpre-
tive publications are not attestation standards.Interpretive publications are
recommendations on the application of the SSAEs in specific circumstances,
including engagements for entities in specialized industries. An interpretive
publicationisissuedundertheauthorityoftherelevantseniortechnicalcom-
mitteeafterallmembersofthecommitteehavebeenprovidedanopportunity
toconsiderandcommentonwhethertheproposedinterpretivepublicationis
consistentwiththeSSAEs.AttestationinterpretationsareincludedintheAT-
C sections of AICPA Professional Standards. AICPA Guides and Attestation
StatementsofPositionarelistedinAT-CappendixA,"AICPAGuidesandState-
mentsofPosition,"ofAICPAProfessionalStandards.
AUDITINGSTANDARDSBOARD
MichaelJ.Santay,Chair
RobertDohrer,ChiefAuditor—AICPA
©2020, AICPA
What’sNewinThisEdition v
WHAT’S NEW IN THIS EDITION
STANDARDSRECENTLYISSUED
Statement Change IssueDate Section
Statementson Agreed-UponProcedures December2019 AT-C215
Standardsfor Engagements
Attestation
Engagements
(SSAE)No.19
SSAENo.20 Amendmentstothe December2019
DescriptionoftheConcept
ofMateriality
ADDITIONS
Section Change
AT-C105A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.19,becomeseffective.
AT-C9105A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.19,becomeseffective.
AT-C205A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.20,becomeseffective.
AT-C9205A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.20,becomeseffective.
AT-C210A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.20,becomeseffective.
AT-C215A Additionofsectiontoretaincurrentlyeffectiveguidance
untilSSAENo.19,becomeseffective.
CHANGES
Section Change
AT-C105 AmendedbySSAENo.19.
AT-C205.A17 AmendedbySSAENo.20.
AT-C210.A16 AmendedbySSAENo.20.
©2020, AICPA
TableofContents vii
TABLE OF CONTENTS
Section Page
… How This Publication Is Organized.......................... 1
U.S. Attestation Standards—AICPA (Clarified) [AT-C]
… AT-C Cross-References to SSAEs............................. 3
… AT-C Introduction........................................... 9
Foreword
PrefacetotheAttestationStandards
GlossaryofTerms
AT-C100 Common Concepts......................................... 31
105—ConceptsCommontoAllAttestationEngagements
9105—ConceptsCommontoAllAttestationEngagements:
AttestationInterpretationsofSection105
105A—ConceptsCommontoAllAttestationEngagements
9105A—ConceptsCommontoAllAttestationEngagements:
AttestationInterpretationsofSection105
AT-C200 Level of Service............................................. 117
205—ExaminationEngagements
9205—ExaminationEngagements:AttestationInterpretationsof
Section205
205A—ExaminationEngagements
9205A—ExaminationEngagements:AttestationInterpretationsof
Section205A
210—ReviewEngagements
210A—ReviewEngagements
215—Agreed-UponProceduresEngagements
215A—Agreed-UponProceduresEngagements
9215A—Agreed-UponProceduresEngagements:Attestation
InterpretationsofSection215
AT-C300 Subject Matter.............................................. 361
305—ProspectiveFinancialInformation
310—ReportingonProFormaFinancialInformation
315—ComplianceAttestation
320—ReportingonanExaminationofControlsata
ServiceOrganizationRelevanttoUserEntities’
InternalControlOverFinancialReporting
395—[DesignatedforATSection701,Management’s
DiscussionandAnalysis]
©2020, AICPA Contents
viii TableofContents
AT-C… Exhibits..................................................... 533
AT-C… Appendixes................................................ 539
AT-C… Topical Index............................................... 547
Contents ©2020, AICPA
HowThisPublicationIsOrganized 1
HOW THIS PUBLICATION IS ORGANIZED
U.S. Attestation Standards—AICPA (Clarified) [AT-C]
TheAT-Csectionsincludeclarifiedaccountingandreviewservicesstandards
issuedbyStatementsonStandardsforAttestationEngagements(SSAE)Nos.
18–20.Thesesectionsarearrangedasfollows:
AT-CCross-ReferencestoSSAEs
AT-CIntroduction
CommonConcepts
LevelofService
SubjectMatter
Exhibits
Appendixes
AT-CTopicalIndex
TheAT-CCross-ReferencestoSSAEslistsallSSAEsissuedsinceSSAENo.
18,AttestationStandards:ClarificationandRecodification,andthesourcesof
sectionsinthecurrenttext.
The AT-C Introduction describes the Auditing Standards Board project to
reviseandclarifyallexistingattestationstandardsintheCodificationofState-
mentsonStandardsforAttestationEngagements.
Thestandardsaredividedintosections,eachwithitsownsectionnumber.
Eachparagraphwithinasectionisdecimallynumbered.
Attestation interpretations are numbered in the 9000 series with the last
threedigitsindicatingthesectiontowhichtheinterpretationrelates.Interpre-
tationsimmediatelyfollowtheircorrespondingsection.Forexample,interpre-
tationsrelatedtosection105arenumbered9105,whichdirectlyfollowssection
105.
Thereisoneexhibitrelatingtoattestationstandardsasfollows:
The exhibit provides a list of AT-C sections designated by SSAE
No.18crossreferencedtoalistofATsections.
Therearetwoappendixesrelatingtoattestationstandardsasfollows:
Appendix A provides a list of AICPA attestation guides and State-
mentsofPosition.
AppendixBidentifiesotherattestationpublicationspublishedbythe
AICPAthathavebeenreviewedbytheAICPAAuditandAttestStan-
dardsstaff.
TheAT-Ctopicalindexusesthekeywordmethodtofacilitatereferenceto
thepronouncements.Theindexisarrangedalphabeticallybytopicandrefers
tomajordivisions,sections,andparagraphnumbers.
©2020, AICPA
TableofContents 3
AT-C Cross-References to SSAEs
TABLE OF CONTENTS
Page
AT-CCross-ReferencestoSSAEs................................................. 5
PartI—StatementsonStandardsforAttestationEngagementsandSources
ofSectionsinCurrentText ..................................... 5
PartII—ListofStatementonStandardsforAttestationEngagements
Nos.1–17 .................................................... 7
©2020, AICPA Contents
AT-CCross-ReferencestoSASs 5
AT-C Cross-References to SSAEs
Part I—Statements on Standards for Attestation
Engagements and Sources of Sections in Current Text
Statements on Standards for Attestation Engagements*
AT-C
No. DateIssued Title Section
18 April2016 AttestationStandards: Clarificationand
Recodification1
19 December2019 Agreed-UponProceduresEngagements2 215
20 December2019 AmendmentstotheDescriptionofthe
ConceptofMateriality3
Sources of Sections in Current Text
AT-CSection Contents Source
100 CommonConcepts
105 ConceptsCommontoAllAttestation SSAENo.19
Engagements
200 LevelofService
205 ExaminationEngagements SSAENo.18,
SSAENo.20
205A ExaminationEngagements SSAENo.18
210 ReviewEngagements SSAENo.18,
SSAENo.20
210A ReviewEngagements SSAENo.18
215 Agreed-UponProceduresEngagements SSAENo.19
300 SubjectMatter
305 ProspectiveFinancialInformation SSAENo.18
310 ReportingonProFormaFinancial SSAENo.18
Information
(continued)
* ThistablelistsStatementsonStandardsforAttestationEngagements(SSAEs)issuedsubse-
quenttoSSAENo.18,AttestationStandards:ClarificationandRecodification,whichwasissuedin
April2016.RefertopartII,"ListofStatementonStandardsforAttestationEngagementsNos.1–17,"
ofthissectionforSSAEsissuedpriortoSSAENo.18.
1 SSAENo.18createdvarioussectionsthroughoutU.S.AttestationStandards—AICPA(Clari-
fied).Seethefollowingsection,"SourcesofSectionsinCurrentText,"forafulllist.
2 SSAENo.19hasbeenintegratedwithinparagraphs105.02–.03,.09–.10,.25,.A2–.A3,.A28,
.A35,.A37,.A39,.A41,and.A56.
SSAENo.19iseffectiveforagreed-uponproceduresreportsdatedonorafterJuly15,2021.
3 SSAENo.20hasbeenintegratedwithinsections205.A17and210.A16.
SSAENo.20iseffectiveforpractitioners'examinationreportsandreviewreportsdatedonor
afterDecember15,2020.
©2020, AICPA