Interim Financial Information – SAS No. 116

The Auditing Standards Board has issued Statement on Auditing Standards (SAS) No. 116, Interim Financial Information. The purpose of this amendment is to revise AU section 722 of AICPA Professional Standards to establish standards and provide guidance on the independent accountant's professional responsibilities when the accountant undertakes an engagement to review interim financial information of a nonissuer*, including companies offering securities pursuant to Securities and Exchange Commission (SEC) Rule 144A or participating in private equity exchanges, when the certain conditions are met. This amendment removes the guidance for reviews of the interim financial statements of issuers since such guidance appropriately resides in the auditing standards of the Public Company Accounting Oversight Board. This SAS is effective for reviews of interim financial information for interim periods beginning after December 15, 2009. Early application is permitted.

*An issuer is defined in section 3 of the Securities Exchange Act of 1934 [15 U.S.C. 78c], the securities of which are registered under section 12 of that act (15 U.S.C. 78l), or that is required to file reports under section 15(d) (15 U.S.C. 78o(d)), or that files or has filed a registration statement that has not yet become effective under the Securities Act of 1933 (15 U.S.C. 77a et seq.), and that it has not withdrawn. A nonissuer is any entity except for one defined as an issuer.