Statements on Standards

Statements on Auditing Standards (SAS) Purpose

guide auditors when they perform audits of historical financial statements.

Statements on Auditing Standards (SAS) When to Use

When a CPA is auditing a company's financial statements to provide reasonable assurance that the statements are free from material misstatement.

Statements on Auditing Standards (SAS) Example

Auditing a company's annual financial report.

Statements on Standards for Attestation Engagements (SSAE) Purpose

When a CPA is engaged to attest to or provide assurance on subject matter or assertions made by someone else, other than historical financial statements.

Statements on Standards for Attestation Engagements (SSAE) When to Use

Examining or reviewing management's assertions about things such as compliance, forecasts, or other non-financial information.

Statements on Standards for Attestation Engagements (SSAE) Example

Expressing an opinion on management’s claim about the square footage of a warehouse or reviewing management’s discussion and analysis (MD&A).

Statements on Standards for Accounting and Review Services (SSARS) Purpose

Preparation, compilation, and review of financial statements that are not audited.

Statements on Standards for Accounting and Review Services (SSARS) When to Use

When a CPA is preparing or compiling financial statements for a nonpublic company or reviewing unaudited financial statements.

Statements on Standards for Accounting and Review Services (SSARS) Example

Compiling a small business’s financial statements or preparing pro forma financial information.

Statements on Standards for Consulting Services (SSCS) Purpose

Consulting services where the CPA provides advice, findings, or recommendations but does not issue an assurance report.

Statements on Standards for Consulting Services (SSCS) When to Use

When a CPA is hired to provide expert advice or consulting, not to attest or audit.

Statements on Standards for Consulting Services (SSCS) Example

Advising a client on improving their accounting system or business processes.