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Number 20

As of January 2020

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 any part of this work, please email copyright-permissions@aicpa-cima com with your request. Otherwise, requests should be written and mailed to Permissions Department, 220 Leigh Farm Road, Durham, NC 27707-8110 USA. 1

ISBN 978-1-94830-613-3 (Print)

ISBN 978-1-119-72338-7 (ePDF)

ISBN 978-1-948306-14-0

ISBN 978-1-119-72341-7 (ePub) (oBook)

PREFACE

Thispublication,issuedbytheAccountingandReviewServicesCommitteeandtheAuditingStandardsBoard(ASB),isacodificationofStatementson StandardsforAttestationEngagements(SSAEs)andtherelatedattestationinterpretationsapplicabletothepreparationandissuanceofattestationreports forallnonissuers.A nonissuer isanyentitynotsubjecttotheSarbanes-Oxley Actof2002ortherulesoftheSEC.

Thispublicationcontainsthecodifiedattestationstandardsissuedthrough SSAENo.20, AmendmentstotheDescriptionoftheConceptofMateriality,and relatedattestationinterpretations.Supersededportionshavebeendeletedand allapplicableamendmentshavebeenincluded.

SSAEsareissuedbyseniorcommitteesoftheAICPAdesignatedtoissue pronouncementsonattestationmattersapplicabletothepreparationandissuanceofattestationreportsforentitiesthatarenonissuers.The"Compliance WithStandardsRule"(ETsec.1.310.001)oftheAICPACodeofProfessional ConductrequiresanAICPAmemberperforminganattestationengagement foranonissuer(apractitioner)tocomplywithstandardspromulgatedbysuch seniorcommittees.Apractitionermustcomplywithanunconditionalrequirementinallcasesinwhichsuchrequirementisrelevant.Apractitioneralso shouldcomplywithapresumptivelymandatoryrequirementinallcasesin whichsuchrequirementisrelevant;however,inrarecircumstances,thepractitionermaydepartfromapresumptivelymandatoryrequirementprovidedthat thepractitionerdocumentsthejustificationforthedepartureandhowthealternativeproceduresperformedinthecircumstancesweresufficienttoachieve theintentofthatrequirement.

ExhibitsandinterpretationstoSSAEsareinterpretivepublications,asdefinedinAT-Csection105, ConceptsCommontoAllAttestationEngagements AT-Csection105requiresthepractitionertoconsiderapplicableinterpretive publicationsinplanningandperforminganattestationengagement.Interpretivepublicationsarenotattestationstandards.Interpretivepublicationsare recommendationsontheapplicationoftheSSAEsinspecificcircumstances, includingengagementsforentitiesinspecializedindustries.Aninterpretive publicationisissuedundertheauthorityoftherelevantseniortechnicalcommitteeafterallmembersofthecommitteehavebeenprovidedanopportunity toconsiderandcommentonwhethertheproposedinterpretivepublicationis consistentwiththeSSAEs.AttestationinterpretationsareincludedintheATCsectionsofAICPA ProfessionalStandards.AICPAGuidesandAttestation StatementsofPositionarelistedinAT-CappendixA,"AICPAGuidesandStatementsofPosition,"ofAICPA ProfessionalStandards.

AUDITINGSTANDARDSBOARD

MichaelJ.Santay, Chair

RobertDohrer,ChiefAuditor—AICPA

Statement

Statementson Standardsfor Attestation Engagements (SSAE)No.19

WHAT’SNEWINTHISEDITION

STANDARDSRECENTLYISSUED

Agreed-UponProcedures Engagements

SSAENo.20 Amendmentstothe DescriptionoftheConcept ofMateriality

ADDITIONS

Section Change

AT-C105AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.19,becomeseffective.

AT-C9105AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.19,becomeseffective.

AT-C205AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.20,becomeseffective.

AT-C9205AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.20,becomeseffective.

AT-C210AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.20,becomeseffective.

AT-C215AAdditionofsectiontoretaincurrentlyeffectiveguidance untilSSAENo.19,becomeseffective.

CHANGES

Section Change

AT-C105AmendedbySSAENo.19. AT-C205.A17AmendedbySSAENo.20.

AT-C210.A16AmendedbySSAENo.20.

Section

AT-CCross-ReferencestoSSAEs

PartI—StatementsonStandardsforAttestation EngagementsandSourcesofSectionsinCurrentText StatementsonStandardsforAttestationEngagements*

SourcesofSectionsinCurrentText

* ThistablelistsStatementsonStandardsforAttestationEngagements(SSAEs)issuedsubsequenttoSSAENo.18, AttestationStandards:ClarificationandRecodification,whichwasissuedin April2016.RefertopartII,"ListofStatementonStandardsforAttestationEngagementsNos.1–17," ofthissectionforSSAEsissuedpriortoSSAENo.18.

1 SSAENo.18createdvarioussectionsthroughout U.S.AttestationStandards—AICPA(Clarified).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.

315 ComplianceAttestation

320 ReportingonanExaminationofControlsat aServiceOrganizationRelevanttoUser Entities'InternalControlOverFinancial Reporting SSAENo.18

395 DesignatedforATSection701, Management'sDiscussionandAnalysis SSAENo.104

4 SSAENo.18doesnotsupersedechapter7,"Management'sDiscussionandAnalysis,"ofSSAE No.10, AttestationStandards:RevisionandRecodification,whichiscurrentlycodifiedasATsection 701.TheAuditingStandardsBoard(ASB)hasnotclarifiedATsection701becausepractitionersrarely performattestengagementstoreportonmanagement'sdiscussionandanalysispreparedpursuant totherulesandregulationsadoptedbytheSEC.Therefore,theASBdecidedthatitwouldretainAT section701initscurrentunclarifiedformatasAT-Csection395untilfurthernotice.

Impaired

AT-CIntroduction

Foreword

AttestationClarityProject

Toaddressconcernsovertheclarity,length,andcomplexityofitsstandards,the AuditingStandardsBoard(ASB)establishedclaritydraftingconventionsand undertookaprojecttoredraftallthestandardsitissuesinclarityformat.The redraftingofStatementsonStandardsforAttestationEngagements(SSAEsor attestationstandards)inSSAENo.18, AttestationStandards:Clarificationand Recodification,representstheculminationofthatprocess.Thissectionredrafts allSSAEs,exceptforthefollowing:

• Chapter7,"Management'sDiscussionandAnalysis,"ofSSAENo. 10, AttestationStandards:RevisionandRecodification (ATsec. 701)

TheASBdecidednottoclarifyATsection701becausepractitionersrarelyperformattestationengagementstoreportonmanagement'sdiscussionandanalysispreparedpursuanttotherulesand regulationsadoptedbytheU.S.SecuritiesandExchangeCommission.Therefore,theASBdecidedthatATsection701shouldbe retainedinitscurrentunclarifiedformatassection395untilfurthernotice.

• SSAENo.15, AnExaminationofanEntity'sInternalControlOver FinancialReportingThatIsIntegratedWithanAuditofItsFinancialStatements,andrelatedAttestationInterpretationNo.1, "ReportingUnderSection112oftheFederalDepositInsurance CorporationImprovementAct"(ATsec.501and9501)

TheASBconcludedthatbecauseengagementsperformedunder ATsection501arerequiredtobeintegratedwithanauditoffinancialstatements,thecontentofATsection501shouldbemoved totheStatementsonAuditingStandards(SASs).Asaresult,in October2015,theASBissuedSASNo.130, AnAuditofInternal ControlOverFinancialReportingThatIsIntegratedWithanAuditofFinancialStatements (AU-Csec.940).ATsection501and therelatedinterpretationwillbewithdrawnwhenSASNo.130 becomeseffective;theeffectivedateforSASNo.130isforintegratedauditsforperiodsendingonorafterDecember15,2016.

TheattestationstandardsaredevelopedandissuedintheformofSSAEsand arecodifiedintosections.Thissectionrecodifiesthe"AT"sectionnumbersdesignatedbySSAENos.10–17usingtheidentifier"AT-C"todifferentiatethe sectionsoftheclarifiedattestationstandards("AT-Csections")fromtheattestationstandardsthataresupersededbySSAENo.18("ATsections").TheAT sectionsremaineffectivethroughApril2017,bywhichtimesubstantiallyall engagementsforwhichtheATsectionswerestilleffectiveareexpectedtobe completed.

Theattestationstandardshavebeenredraftedinaccordancewiththeclarity draftingconventions,whichincludethefollowing:

• EstablishingobjectivesforeachAT-Csection

• Includingadefinitionssection,whererelevant,ineachAT-Csection

• Separatingrequirementsfromapplicationandotherexplanatory material

• NumberingapplicationandotherexplanatorymaterialparagraphsusinganA-prefixandpresentingtheminaseparatesectionthatfollowstherequirementssection

• Usingformattingtechniques,suchasbulletedlists,toenhance readability

• Including,whenappropriate,specialconsiderationsrelevantto auditsofsmaller,lesscomplexentitieswithinthetextoftheAT-C section

• Including,whenappropriate,specialconsiderationsrelevantto examination,review,oragreed-uponproceduresengagementsfor governmentalentitieswithinthetextoftheAT-Csection

Convergence

ItistheASB'sgeneralstrategytoconvergeitsstandardswiththoseoftheInternationalAuditingandAssuranceStandardsBoard.Accordingly,thefoundation forsection105, ConceptsCommontoAllAttestationEngagements;section205, ExaminationEngagements;andsection210, ReviewEngagements,isInternationalStandardonAssuranceEngagements(ISAE)3000(Revised), Assurance EngagementsOtherThanAuditsorReviewsofHistoricalFinancialInformation.ManyoftheparagraphsinthissectionhavebeenconvergedwiththerelatedparagraphsinISAE3000(Revised),withcertainchangesmadetoreflect U.S.professionalstandards.Othercontentincludedinthissectionisderived fromtheextantSSAEs.

TheASBdecidednottoadoptcertainprovisionsofISAE3000(Revised),for example,inthissection,apractitionerisnotpermittedtoissueanexamination orreviewreportifthepractitionerhasnotobtainedawrittenassertionfrom theresponsibleparty,exceptwhentheengagingpartyisnottheresponsible party.IntheISAEs,anassertion(orrepresentationaboutthesubjectmatter againstthecriteria)isnotrequiredinorderforthepractitionertoreport.

Section215, Agreed-UponProceduresEngagements,isbasedonaredrafting ofextantATsection201, Agreed-UponProceduresEngagements,inclarified format.ISAE3000(Revised)doesnotaddressagreed-uponproceduresengagements.

AuthorityoftheSSAEs

1 Seethedefinitionoftheterm nonissuer intheAU-CGlossary.[Footnoteadded,February2017, tobetterreflecttheAICPACouncilResolutiondesignatingthePublicCompanyAccountingOversight Boardtopromulgatetechnicalstandards.]

whichsuchrequirementisrelevant.Apractitioneralsomustcomplywitha presumptivelymandatoryrequirementinallcasesinwhichsuchrequirement isrelevant.However,if,inrarecircumstances,apractitionerjudgesitnecessarytodepartfromarelevantpresumptivelymandatoryrequirement,the practitionermustdocumentthejustificationforthedepartureandhowthealternativeproceduresperformedinthecircumstancesweresufficienttoachieve theintentofthatrequirement.

ExhibitsandinterpretationstoSSAEsare interpretivepublications,asdefined insection105.Section105requiresthepractitionertoconsiderapplicableinterpretivepublicationsinplanningandperformingtheattestationengagement. Interpretivepublicationsarenotattestationstandards.InterpretivepublicationsarerecommendationsontheapplicationoftheSSAEsinspecificcircumstances,includingengagementsforentitiesinspecializedindustries.Aninterpretivepublicationisissuedundertheauthorityoftherelevantseniortechnical committeeafterallmembersofthecommitteehavebeenprovidedanopportunitytoconsiderandcommentonwhethertheproposedinterpretivepublication isconsistentwiththeSSAEs.AttestationinterpretationsareincludedinATCsections.AICPAGuidesandAttestationStatementsofPositionarelistedin AT-CappendixA,"AICPAGuidesandStatementsofPosition."

AUDITINGSTANDARDSBOARD

MichaelJ.Santay, Chair RobertDohrer,ChiefAuditor—AICPA

AT-CPreface*

PrefacetotheAttestationStandards

.01 TheStatementsonStandardsforAttestationEngagements(SSAEs orattestationstandards)establishrequirementsandprovideapplicationguidanceforperformingandreportingonexamination,review,andagreed-upon proceduresengagements(attestationengagements).Examplesofsubjectmatterforattestationengagementsareascheduleofinvestmentreturns,theeffectivenessofanentity'scontrolsoverthesecurityofasystem,orastatement ofgreenhousegasemissions.

.02 Theattestationstandardsareissuedunderthe"ComplianceWith StandardsRule"(ETsection1.310.001)oftheAICPACodeofProfessionalConduct,whichrequiresanAICPAmemberwhoperformsanattestationengagementtocomplywithstandardspromulgatedbybodiesdesignatedbyAICPA council.AICPAcouncilhasgrantedtheAuditingStandardsBoardauthorityto promulgatetheattestationstandards,whichareissuedthroughadueprocess thatincludesdeliberationinmeetingsopentothepublic,publicexposureof proposedattestationstandards,andaformalvotebyanauthorizedstandardsettingbody.

.03 Thisprefaceprovidesanoverviewoftheattestationstandardsbutdoes notestablishrequirementsanddoesnotcarryanyauthority.Itisintendedto behelpfulinunderstandingattestationengagements.

.04 Theattestationstandardsaredevelopedandissuedintheformof SSAEsandarecodifiedintosections.Theidentifier"AT-C"isusedtodifferentiatethesectionsoftheclarifiedattestationstandardsissuedinApril2016 (AT-Csections)fromthesectionsoftheattestationstandardstheysupersede (identifiedasATsections).

StructureoftheAttestationStandards

.05 Theattestationstandardsapplytothreelevelsofservice— examination,review,andagreed-uponprocedures—andcanbeappliedto innumerabletypesofsubjectmatter.TheapplicabilityofspecificAT-Csections toanengagementdependsonboththelevelofserviceprovidedandthesubject matteronwhichthepractitionerisengagedtoreport.

.06 Section105, ConceptsCommontoAllAttestationEngagements,containsconceptsthatarerelevanttoanyattestationengagement.Thelevelofservicesectionsaresection205, ExaminationEngagements;section210, Review Engagements;andsection215, Agreed-UponProceduresEngagements,which containadditionalrequirementsandapplicationguidancespecifictoexamination,review,oragreed-uponproceduresengagements,respectively.Underthe attestationstandards,theapplicablerequirementsandapplicationguidance foranyattestationengagementarecontainedinatleasttwosections:section 105andsection205,210,or215,dependingonthelevelofservicebeingprovided.Inaddition,incrementalperformanceandreportingrequirementsand applicationguidanceuniquetospecificsubjectmatters,suchasprospectivefinancialinformationorcompliancewithlawsandregulations,arecontainedin

∗ Thissectioncontainsan"AT-C"identifier,insteadofan"AT"identifier,toavoidconfusionwith referencestoexisting"AT"sections,whichremaineffectivethroughApril2017.

thesubject-mattersections.Theapplicablerequirementsandapplicationguidanceforasubject-matter-specificengagementiscontainedinthreesections: section105;section205,210,or215,asapplicable;andtheapplicablesubjectmattersection.

PurposeoftheEngagementandPremiseonWhich anAttestationEngagementIsConducted

.07 Thepurposeofanattestationengagementistoprovideusersofinformation,generallythirdparties,withanopinion,conclusion,orfindingsregardingthereliabilityofsubjectmatteroranassertionaboutthesubjectmatter, asmeasuredagainstsuitableandavailablecriteria.(Anexaminationengagementresultsinanopinion;areviewengagementresultsinaconclusion;and anagreed-uponproceduresengagementresultsinfindings.)Thepractitioner's reportisintendedtoenhancethedegreeofconfidencethatintendeduserscan placeinthesubjectmatter.

Responsibilities

.08 Anengagementinaccordancewiththeattestationstandardsisconductedonthepremisethattheresponsiblepartyisresponsiblefor

• thesubjectmatter(and,ifapplicable,thepreparationandpresentationofthesubjectmatter)inaccordancewith(orbasedon)the criteria

• itsassertionaboutthesubjectmatter;

• measuring,evaluating,and,whenapplicable,presentingsubject matterthatisfreefrommaterialmisstatement,whetherdueto fraudorerror;and

• providingthepractitionerwith

—accesstoallinformationofwhichtheresponsiblepartyis awarethatisrelevanttothemeasurement,evaluation,or disclosureofthesubjectmatter;

—accesstoadditionalinformationthatthepractitionermay requestfromtheresponsiblepartyforthepurposeofthe engagement;and

—unrestrictedaccesstopersonswithintheappropriate party(ies)fromwhomthepractitionerdeterminesitisnecessarytoobtainevidence.

.09 Practitionersareresponsibleforcomplyingwiththerelevantperformanceandreportingrequirementsestablishedintheattestationstandards whentheyareengagedtoissue,ordoissue,anexamination,review,oragreeduponproceduresreportonsubjectmatteroranassertionaboutsubjectmatter thatistheresponsibilityofanotherparty(theresponsibleparty).Although apractitionermayassisttheresponsiblepartyindevelopingorpresenting thesubjectmatter,theresponsiblepartyremainsresponsibleforthesubject matter.

Performance

.10 Inallservicesprovidedundertheattestationstandards,practitioners areresponsiblefor

• havingtheappropriatecompetenceandcapabilitiestoperform theengagement,

• complyingwithrelevantethicalrequirements,

• maintainingprofessionalskepticism,and

• exercisingprofessionaljudgmentthroughouttheplanningand performanceoftheengagement.

.11 Toexpressanopinioninanexamination,thepractitionerobtainsreasonableassuranceaboutwhetherthesubjectmatter,oranassertionaboutthe subjectmatter,isfreefrommaterialmisstatement,whetherduetofraudorerror.Toobtainreasonableassurance,whichisahighbutnotabsolutelevelof assurance,thepractitioner

• planstheworkandproperlysupervisesothermembersoftheengagementteam.

• identifiesandassessestherisksofmaterialmisstatement, whetherduetofraudorerror,basedonanunderstandingofthe subjectmatter,itsmeasurementorevaluation,thecriteria,and otherengagementcircumstances.

• obtainssufficientappropriateevidenceaboutwhethermaterial misstatementsexistbydesigningandimplementingappropriate responsestotheassessedrisks.Examinationproceduresmayinvolveinspection,observation,analysis,inquiry,reperformance,recalculation,orconfirmationwithoutsideparties.

.12 Toexpressaconclusioninareview,thepractitionerobtainslimited assuranceaboutwhetheranymaterialmodificationshouldbemadetothe subjectmatterinorderforitbeinaccordancewith(orbasedon)thecriteriaor toanassertionaboutthesubjectmatterinorderforittobefairlystated.Ina review,thenatureandextentoftheproceduresaresubstantiallylessthanin anexamination.Toobtainlimitedassuranceinareview,thepractitioner

• planstheworkandproperlysupervisesothermembersoftheengagementteam.

• focusesproceduresinthoseareasinwhichthepractitionerbelievesincreasedrisksofmisstatementsexist,whetherdueto fraudorerror,basedonthepractitioner'sunderstandingofthe subjectmatter,itsmeasurementorevaluation,thecriteria,and otherengagementcircumstances.

• obtainsreviewevidence,throughtheapplicationofinquiryand analyticalproceduresorotherproceduresasappropriate,toobtainlimitedassurancethatnomaterialmodificationsshouldbe madetothesubjectmatterinorderforittobeinaccordancewith (orbasedon)thecriteria.

.13 Toreportontheapplicationofagreed-uponprocedures,thepractitionerappliesproceduresdeterminedbythespecifiedpartieswhoaretheintendedusersofthepractitioner'sreportandwhoareresponsibleforthesufficiencyoftheproceduresfortheirpurposes.Asaresultoftheengagement, thepractitionerreportsontheresultsoftheengagementbutdoesnotprovide anopinionorconclusiononthesubjectmatterorassertion.Inanagreed-upon proceduresengagement,thepractitioner

• planstheworkandproperlysupervisesothermembersoftheengagementteam.

• appliestheproceduresagreedtobythespecifiedpartiesandreportsontheirresults.

Reporting

.14 Basedonevidenceobtained,thepractitionerexpressesanopinionin anexamination,expressesaconclusioninareview,orreportsfindingsinan agreed-uponproceduresengagement.Inthecaseofanexamination,thepractitioner'sreportprovidesanopinionaboutwhetherthesubjectmatter,asmeasuredagainstthecriteria,isinaccordancewith(orbasedon)thecriteria(or whethertheassertionaboutthesubjectmatterisfairlystated),inallmaterial respects.Inareview,thereportexpressesaconclusionaboutwhether,basedon thelimitedprocedures,thepractitionerisawareofanymaterialmodification thatshouldbemadetothesubjectmatterinorderforittobeinaccordancewith (orbasedon)thecriteriaortotheassertioninorderforittobefairlystated. Inanagreed-uponproceduresreport,thepractitionerdescribesthespecified proceduresthatwereappliedtothesubjectmatterandtheresultsofthose procedures.

AT-CGlossary

GlossaryofTerms1

Appropriateparty. Referencetothistermshouldbereadasthe responsible party orthe engagingparty,asappropriate.Alsosee engagingparty and responsibleparty

Appropriatenessofevidence(inthecontextofsection205, ExaminationEngagements). Themeasureofthequalityofevidence,thatis,its relevancyandreliabilityinprovidingsupportforthepractitioner'sopinion.Alsosee evidence.

Appropriatenessofreviewevidence(inthecontextofsection210, ReviewEngagements). Themeasureofthequalityofreviewevidence,that is,itsrelevancyandreliabilityinprovidingsupportforthepractitioner's conclusion.Alsosee reviewevidence.

Assertion. Anydeclarationorsetofdeclarationsaboutwhetherthesubject matterisinaccordancewith(orbasedon)thecriteria.

Attestationengagement. Anexamination,review,oragreed-uponprocedures engagementperformedundertheattestationstandardsrelatedtosubject matteroranassertionthatistheresponsibilityofanotherparty.Thefollowingarethethreetypesofattestationengagements:

• Examinationengagement.Anattestationengagementinwhich thepractitionerobtainsreasonableassurancebyobtainingsufficientappropriateevidenceaboutthemeasurementorevaluationofsubjectmatteragainstcriteriainordertobeabletodraw reasonableconclusionsonwhichtobasethepractitioner'sopinion aboutwhetherthesubjectmatterisinaccordancewith(orbased on)thecriteriaortheassertionisfairlystated,inallmaterialrespects.

• Reviewengagement.Anattestationengagementinwhichthepractitionerobtainslimitedassurancebyobtainingsufficientappropriatereviewevidenceaboutthemeasurementorevaluationof subjectmatteragainstcriteriainordertoexpressaconclusion aboutwhetheranymaterialmodificationshouldbemadetothe subjectmatterinorderforitbeinaccordancewith(orbasedon) thecriteriaortotheassertioninorderforittobefairlystated.

• Agreed-uponproceduresengagement.Anattestationengagement inwhichapractitionerperformsspecificproceduresonsubject matteroranassertionandreportsthefindingswithoutprovidinganopinionoraconclusion.

Alsosee specifiedparty and attestationstandards

1 Thisglossaryliststermsdefinedinthe"Definitions"sectionsoftheattestationstandardsaswell ascertaintermsdefinedorexplainedinothersectionsoftheattestationstandards.Termsdefinedfor purposesofaspecificsectionaredenotedassuch.Termsmayappearinmorethanonesection.

Attestationrisk. Inanexaminationorreviewengagement,theriskthatthe practitionerexpressesaninappropriateopinionorconclusion,asapplicable,whenthesubjectmatterorassertionismateriallymisstated.

Attestationstandards. TheStatementsonStandardsforAttestationEngagements(SSAEs),whicharealsoknownasthe attestationstandards, establishrequirementsandprovideguidanceforperformingandreporting onexamination,review,andagreed-uponproceduresengagements(attestationengagements).Examplesofsubjectmatterforattestationengagementsareascheduleofinvestmentreturns,theeffectivenessofanentity's controlsoverthesecurityofasystem,orastatementofgreenhousegas emissions.TheSSAEsapplyonlytoattestationengagementsperformed undertheSSAEs.Theyareissuedunderthe"ComplianceWithStandards Rule"(ETsec.1.310.001)oftheAICPACodeofProfessionalConduct,which requiresanAICPAmemberwhoperformsanattestationengagementto complywithstandardspromulgatedbybodiesdesignatedbyAICPACouncil.AICPACouncilhasgrantedtheAuditingStandardsBoardauthorityto promulgatetheattestationstandards,whichareissuedthroughadueprocessthatincludesdeliberationinmeetingsopentothepublic,publicexposureofproposedattestationstandards,andaformalvotebyanauthorized standard-settingbody.Alsosee attestationengagement.

Carve-outmethod(inthecontextofsection320, ReportingonanExaminationofControlsataServiceOrganizationRelevanttoUser Entities’InternalControlOverFinancialReporting). Methodofaddressingtheservicesprovidedbyasubserviceorganization,wherebymanagement'sdescriptionoftheserviceorganization'ssystemidentifiesthenatureoftheservicesperformedbythesubserviceorganizationandexcludes fromthedescriptionandfromthescopeoftheserviceauditor'sengagementthesubserviceorganization'srelevantcontrolobjectivesandrelated controls.

Complementarysubserviceorganizationcontrols(inthecontextof section320). Controlsthatmanagementoftheserviceorganizationassumes,inthedesignoftheserviceorganization'ssystem,willbeimplementedbythesubserviceorganizationsandarenecessarytoachievethe controlobjectivesstatedinmanagement'sdescriptionoftheserviceorganization'ssystem.

Complementaryuserentitycontrols(inthecontextofsection320). Controlsthatmanagementoftheserviceorganizationassumes,inthedesignoftheserviceorganization'ssystem,willbeimplementedbyuserentitiesandarenecessarytoachievethecontrolobjectivesstatedinmanagement'sdescriptionoftheserviceorganization'ssystem.

Compliancewithspecifiedrequirements(inthecontextofsection315, ComplianceAttestation). Anentity'scompliancewithspecifiedlaws, regulations,rules,contracts,orgrants.

Controlobjectives(inthecontextofsection320). Theaimorpurposeof specifiedcontrolsattheserviceorganization.Controlobjectivesaddress therisksthatcontrolsareintendedtomitigate.

Controlsataserviceorganization(inthecontextofsection320). The policiesandproceduresataserviceorganizationlikelytoberelevantto userentities'internalcontroloverfinancialreporting.Thesepoliciesand proceduresaredesigned,implemented,anddocumentedbytheserviceorganizationtoprovidereasonableassuranceabouttheachievementofthe

controlobjectivesrelevanttotheservicescoveredbytheserviceauditor's report.

Inthecontextofsection320,thepoliciesandproceduresincludeaspects oftheinformationandcommunicationscomponentofuserentities'internalcontrolmaintainedbytheserviceorganizationandcontrolactivities relatedtotheinformationandcommunicationscomponentandmayalso includeaspectsofoneormoreoftheothercomponentsofinternalcontrol ataserviceorganization.Forexample,thedefinitionof controlsataserviceorganization mayincludeaspectsoftheserviceorganization'scontrol environment,riskassessment,monitoringactivities,andcontrolactivities whentheyrelatetotheservicesprovided.Suchdefinitiondoesnot,however,includecontrolsataserviceorganizationthatarenotrelatedtothe achievementofthecontrolobjectivesstatedinmanagement'sdescription oftheserviceorganization'ssystem,forexample,controlsrelatedtothe preparationoftheserviceorganization'sownfinancialstatements.

Criteria. Thebenchmarksusedtomeasureorevaluatethesubjectmatter. Criteriaforthepreparationofproformafinancialinformation(inthe contextofsection310, ReportingonProFormaFinancialInformation). Thebasisdisclosedintheproformafinancialinformationthat managementusedtodeveloptheproformafinancialinformation,includingtheassumptionsunderlyingtheproformafinancialinformation.Paragraph.11ofsection310containstheattributesofsuitablecriteriaforan examinationorreviewofproformafinancialinformation.

Documentationcompletiondate. Thedateonwhichthepractitionerhas assembledforretentionacompleteandfinalsetofdocumentationinthe engagementfile.

Engagementcircumstances. Thebroadcontextdefiningtheparticularengagement,whichincludesthetermsoftheengagement;whetheritisan examination,review,oragreed-uponproceduresengagement;thecharacteristicsofthesubjectmatter;thecriteria;theinformationneedsofthe intendedusers;relevantcharacteristicsoftheresponsiblepartyand,ifdifferent,theengagingpartyandtheirenvironment;andothermatters,for example,events,transactions,conditionsandpractices,andrelevantlaws andregulations,thatmayhaveasignificanteffectontheengagement.

Engagementdocumentation. Therecordofproceduresperformed,relevant evidenceobtained,and,inanexaminationorreviewengagement,conclusionsreachedbythepractitioner,orinanagreed-uponproceduresengagement,findingsofthepractitioner.(Termssuchas workingpapers or workpapers arealsosometimesused).

Engagementpartner. Thepartnerorotherpersoninthefirmwhoisresponsiblefortheattestationengagementanditsperformanceandforthepractitioner'sreportthatisissuedonbehalfofthefirmandwho,whenrequired, hastheappropriateauthorityfromaprofessional,legal,orregulatorybody. Engagementpartner, partner,and firm refertotheirgovernmentalequivalentswhenrelevant.Alsosee firm and practitioner

Engagementteam. Allpartnersandstaffperformingtheengagementand anyindividualsengagedbythefirmoranetworkfirmwhoperformattestationproceduresontheengagement.Thisexcludesapractitioner'sexternal specialistandengagementqualitycontrolreviewerengagedbythefirm oranetworkfirm.Theterm engagementteam alsoexcludesindividuals withintheclient'sinternalauditfunctionwhoprovidedirectassistance.

Engagingparty. Theparty(ies)thatengagesthepractitionertoperformthe attestationengagement.Alsosee appropriateparty and responsible party.

Entity(inthecontextofsection305, ProspectiveFinancialInformation). Anyunit,existingortobeformedforwhichfinancialstatements couldbepreparedinaccordancewithgenerallyacceptedaccountingprinciplesorspecialpurposeframeworks.Forexample,anentitycanbean individual,partnership,corporation,trust,estate,association,orgovernmentalunit.

Evidence. Informationusedbythepractitionerinarrivingattheopinion,conclusion,orfindingsonwhichthepractitioner'sreportisbased.Alsosee appropriatenessofevidence and sufficiencyofevidence

Financialforecast(inthecontextofsection305). Prospectivefinancial statementsthatpresent,tothebestoftheresponsibleparty'sknowledge andbelief,anentity'sexpectedfinancialposition,resultsofoperations,and cashflows.Afinancialforecastisbasedontheresponsibleparty'sassumptionsreflectingconditionsitexpectstoexistandthecourseofactionit expectstotake.Afinancialforecastmaybeexpressedinspecificmonetaryamountsasasingle-pointestimateofforecastedresultsorasarange, whentheresponsiblepartyselectskeyassumptionstoformarangewithin whichitreasonablyexpects,tothebestofitsknowledgeandbelief,theitem oritemssubjecttotheassumptionstoactuallyfall.Ifaforecastcontains arange,therangeisnotselectedinabiasedormisleadingmanner(for example,arangeinwhichoneendissignificantlylessexpectedthanthe other).

Financialprojection(inthecontextofsection305). Prospectivefinancialstatementsthatpresent,tothebestoftheresponsibleparty'sknowledgeandbelief,givenoneormorehypotheticalassumptions,anentity's expectedfinancialposition,resultsofoperations,andcashflows.Afinancialprojectionissometimespreparedtopresentoneormorehypotheticalcoursesofactionforevaluation,asinresponsetoaquestionsuchas, "Whatwouldhappenif...?"Afinancialprojectionisbasedontheresponsibleparty'sassumptionsreflectingconditionsitexpectswouldexistandthe courseofactionitexpectswouldbetaken,givenoneormorehypothetical assumptions.Aprojection,likeaforecast,maycontainarange.

Firm. AformoforganizationpermittedbylaworregulationwhosecharacteristicsconformtoresolutionsoftheCounciloftheAICPAandthatisengaged inthepracticeofpublicaccounting.Alsosee engagementpartner and practitioner.

Forecast(inthecontextofsection305). Usedalone,thistermmeansforecastedinformation,whichcanbeeitherafullpresentation(afinancialforecast)orapartialpresentation.Alsosee financialforecast

Fraud. Anintentionalactinvolvingtheuseofdeceptionthatresultsinamisstatementinthesubjectmatterortheassertion.

Generaluse. Useofapractitioner'sreportthatisnotrestrictedtospecified parties.

Generaluseofprospectivefinancialstatements(inthecontextofsection305). Referstotheuseofthestatementsbypersonswithwhomthe responsiblepartyisnotnegotiatingdirectly,forexample,inanoffering statementofanentity'sdebtorequityinterests.Alsosee limiteduseof

prospectivefinancialstatements and prospectivefinancialstatements.

Guide(inthecontextofsection305). TheAICPAGuide ProspectiveFinancialInformation.

Hypotheticalassumption(inthecontextofsection305). Anassumption usedinafinancialprojectionorinapartialpresentationofprojectedinformationtopresentaconditionorcourseofactionthatisnotnecessarily expectedtooccurbutisconsistentwiththepurposeoftheprojection.

Inclusivemethod(inthecontextofsection320). Methodofaddressingthe servicesprovidedbyasubserviceorganizationwherebymanagement'sdescriptionoftheserviceorganization'ssystemincludesadescriptionofthe natureoftheservicesprovidedbythesubserviceorganizationaswellas thesubserviceorganization'srelevantcontrolobjectivesandrelatedcontrols.

Internalauditfunction. Afunctionofanentitythatperformsassuranceand consultingactivitiesdesignedtoevaluateandimprovetheeffectivenessof theentity'sgovernance,riskmanagement,andinternalcontrolprocesses. Internalcontrolovercompliance(inthecontextofsection315). An entity'sinternalcontrolovercompliancewithspecifiedrequirements.The internalcontroladdressedinsection315mayincludepartof,butisnotthe sameas,internalcontroloverfinancialreporting.

Interpretivepublications. Interpretivepublicationsarenotattestation standards.Interpretivepublicationsarerecommendationsontheapplicationoftheattestationstandardsinspecificcircumstances,includingengagementsforentitiesinspecializedindustries.Aninterpretive publicationisissuedundertheauthorityoftherelevantseniortechnical committeeafterallmembersofthecommitteehavebeenprovidedanopportunitytoconsiderandcommentonwhethertheproposedinterpretive publicationisconsistentwiththeattestationstandards.Examplesofinterpretivepublicationsareinterpretationsoftheattestationstandards,exhibitstotheattestationstandards,attestationguidanceincludedinAICPA guidesandattestationStatementsofPosition(SOPs).Interpretationsof theattestationstandardsandexhibitsareincludedwithinthesectionsof theattestationstandards.AICPAguidesandattestationSOPsarelisted inAT-CappendixA,"AICPAGuidesandStatementsofPosition,"ofthe attestationstandards.Alsosee otherattestationpublications.

Keyfactors(inthecontextofsection305). Thesignificantmatterson whichanentity'sfutureresultsareexpectedtodepend.Suchfactorsare basictotheentity'soperationsand,thus,encompassmattersthataffect, amongotherthings,theentity'ssales,production,service,andfinancing activities.Keyfactorsserveasafoundationforprospectivefinancialinformationandarethebasesfortheassumptions.

Limiteduseofprospectivefinancialstatements(inthecontextofsection305). Referstotheuseofprospectivefinancialstatementsbytheresponsiblepartyaloneorbytheresponsiblepartyandthirdpartieswith whomtheresponsiblepartyisnegotiatingdirectly.Examplesincludeuse innegotiationsforabankloan,submissiontoaregulatoryagency,anduse solelywithintheentity.Alsosee generaluseofprospectivefinancial statements and prospectivefinancialstatements.

Management'sdescriptionofaserviceorganization'ssystemandaserviceauditor'sreportonthatdescriptionandonthesuitabilityof

thedesignofcontrols(referredtointhecontextofsection320as a type1report).Aserviceauditor'sreportthatcomprisesthefollowing:

i.Management'sdescriptionoftheserviceorganization'ssystem

ii.Awrittenassertionbymanagementoftheserviceorganization aboutwhether,basedonthecriteria

(1)management'sdescriptionoftheserviceorganization's systemfairlypresentstheserviceorganization'ssystem thatwasdesignedandimplementedasofaspecifieddate

(2)thecontrolsrelatedtothecontrolobjectivesstatedinmanagement'sdescriptionoftheserviceorganization'ssystem weresuitablydesignedtoachievethosecontrolobjectives asofthespecifieddate

iii.Aserviceauditor'sreportthatexpressesanopiniononthemattersin(ii)(1)–(ii)(2)

Management'sdescriptionofaserviceorganization'ssystemandaserviceauditor'sreportonthatdescriptionandonthesuitabilityof thedesignandoperatingeffectivenessofcontrols(referredtoin thecontextofsection320asa type2report).Aserviceauditor'sreport thatcomprisesthefollowing:

i.Management'sdescriptionoftheserviceorganization'ssystem ii.Awrittenassertionbymanagementoftheserviceorganization aboutwhether,basedonthecriteria

(1)management'sdescriptionoftheserviceorganization's systemfairlypresentstheserviceorganization'ssystem thatwasdesignedandimplementedthroughoutthespecifiedperiod

(2)thecontrolsrelatedtothecontrolobjectivesstatedinmanagement'sdescriptionoftheserviceorganization'ssystem weresuitablydesignedthroughoutthespecifiedperiodto achievethosecontrolobjectives

(3)thecontrolsrelatedtothecontrolobjectivesstatedinmanagement'sdescriptionoftheserviceorganization'ssystemoperatedeffectivelythroughoutthespecifiedperiod toachievethosecontrolobjectives

iii.Aserviceauditor'sreportthat

(1)expressesanopiniononthemattersin(ii)(1)–(ii)(3)

(2)includesadescriptionofthetestsofcontrolsandtheresultsthereof

Materialnoncompliance(inthecontextofsection315). Afailuretofollow compliancerequirementsoraviolationofprohibitionsincludedinthespecifiedrequirementsthatresultsinnoncompliancethatisquantitativelyor qualitativelymaterial,eitherindividuallyorwhenaggregatedwithother noncompliance.

Misstatement. Adifferencebetweenthemeasurementorevaluationofthe subjectmatterbytheresponsiblepartyandthepropermeasurementor evaluationofthesubjectmatterbasedonthecriteria.Misstatementscan beintentionalorunintentional,qualitativeorquantitative,andinclude omissions.Incertainengagements,amisstatementmaybereferredtoas a deviation, exception,or instanceofnoncompliance.Alsosee riskofmaterialmisstatement.

Codification of statements on standards for attestation engagements: 2020 aicpa all chapter instant

PREFACE

WHAT’SNEWINTHISEDITION

ADDITIONS

CHANGES

TABLEOFCONTENTS

U.S.AttestationStandards—AICPA(Clariﬁed)[AT-C]

AT-CCross-ReferencestoSSAEs

SourcesofSectionsinCurrentText

AT-CIntroduction

Foreword

AttestationClarityProject

Convergence

AuthorityoftheSSAEs

AUDITINGSTANDARDSBOARD

AT-CPreface*

PrefacetotheAttestationStandards

StructureoftheAttestationStandards

PurposeoftheEngagementandPremiseonWhich anAttestationEngagementIsConducted

Responsibilities

Performance

Reporting

AT-CGlossary

GlossaryofTerms1