Statements of Position

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Description

The Forecasts and Projections Audit Issues Task Force developed this proposed statement of position (SOP) to clarify and expand on procedural and reporting guidance contained in the AICPA Guide for Prospective Financial Statements ("the Guide"). Specifically, the SOP provides guidance to practitioners engaged to provide services on: 1. Prospective financial statements for internal use only. 2. Partial presentations of prospective financial information. Sections 900 and 1000 of the Guide provide limited guidance on accountants' services on prospective financial statements for internal use only and partial presentations, respectively. However, much of that guidance was based on rule 201(e) of the AICPA Code of Professional Ethics and related interpretation 201-2. The interpretation, which applied to both partial presentations and prospective financial statements intended for internal use only, discussed the disclosure of assumptions, disclosure of the character of the work done by the accountant, and the degree of responsibility taken by the accountant. Rule 201(e) and its related interpretation, however, were deleted with the adoption of the AICPA Code of Professional Conduct by the membership in January 1988. Therefore, this proposed SOP provides needed guidance in these areas. In addition, practitioners have requested additional guidance on services on partial presentations of prospective financial information. The SOP is divided into two sections: 1. Guidance on the Accountant's Services and Reports on Prospective Financial Statements for Internal Use Only, which would replace Section 900 of the Guide, provides practitioners with suggested procedural and reporting guidance to use in providing services on financial forecasts and projections for internal use only. Specifically, this section amends Section 900 of the Guide for deletion of rule 201(e) and its related interpretation and expands on the guidance in Section 900 when an accountant decides to issue a report on his or her services with respect to prospective financial statements for internal use only. 2. Partial Presentations of Prospective Financial Information, which would replace Section 1000 of the Guide, provides procedural and reporting guidance to an accountant who is engaged to issue or issues a written communication that expresses a conclusion about the reliability of a written partial presentation that is the responsibility of another party. In such circumstances, the accountant should examine or apply agreed-upon procedures to the presentation. Guidance is also included for an accountant engaged to compile a partial presentation. In addition, the SOP describes how much of the guidance in the Guide can be applied to partial presentations.

Publication Date

1989

Relational Format

Book

Keywords

Financial statements -- United States -- Forecasting

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement of position : accountants' services on prospective financial statements for internal use only and partial presentations ;Accountants' services on prospective financial statements for internal use only and partial presentations; Exposure draft (American Institute of Certified Public Accountants), 1989, Apr. 25

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