Personal Financial Statements Guide — AICPA Audit Guide

This Audit Guide provides the latest information on auditing issues affecting personal financial statements. Updated with conforming changes as of May 1, 2008, it includes guidance in planning and performing audits under the risk assessment standards (SAS Nos. 104-111). This edition of the guide has also been conformed to reflect the Defining Professional Requirements standards (SAS No. 102 and SSARS No. 16). Furthermore, it provides additional guidance on the auditor’s responsibilities as set forth in SAS Nos. 112-114, including identifying and reporting internal control deficiencies, understanding the link between the auditor’s consideration of fraud and the auditor’s assessment of risk, and dating of the management representation letter.

The guide summarizes applicable requirements and practices, and delivers "how-to" advice for handling audit and accounting issues common with personal financial statements. It includes accounting requirements under SOP 82-1, Accounting and Financial Reporting for Personal Financial Statements, and a discussion of the relevant financial statement considerations for personal financial statements. Included in the appendices is the full text of SOP 82-1. The guide also discusses the impact of SSARS No. 17 on the review and compilation guidance for personal financial statements. This guide also includes illustrative reports on personal financial statements, as well as illustrative engagement letters and representation letters.

For a topical listing of subject matter by chapter, click on the Table of Contents tab.

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Notice to Readers

This guide presents recommendations of the AICPA Personal Financial Statements Task Force on the application of professional standards to compilations, reviews, and audits of personal financial statements. Members of the AICPA Accounting and Review Services Committee (ARSC) and Auditing Standards Board (ASB) have found this guide to be consistent with existing standards covered by Rule 202, ComplianceWith Standards (AICPA, Professional Standards, vol. 2, ET sec. 202), of the AICPA Code of Professional Conduct.

Auditing guidance included in an AICPA Audit Guide is an interpretive publication pursuant to AU section 150, Generally Accepted Auditing Standards (AICPA, Professional Standards, vol. 1). Interpretive publications are recommendations on the application of Statements on Auditing Standards (SASs) in specific circumstances, including engagements for entities in specialized industries. An interpretive publication is issued under the authority of the ASB after all ASB members have been provided an opportunity to consider and comment on whether the proposed interpretive publication is consistent with the SASs. The members of the ASB have found this guide to be consistent with existing SASs.

The auditor should be aware of and consider interpretive publications applicable to his or her audit. If an auditor does not apply the auditing guidance included in an applicable interpretive publication, the auditor should be prepared to explain how he or she complied with the SAS provisions addressed by such auditing guidance.

This AICPA Audit Guide, which also contains review and compilation guidance, is an interpretive publication pursuant to AR section 50, Standards for Accounting and Review Services (AICPA, Professional Standards, vol. 2). Interpretive publications include recommendations on the application of Statements on Standards for Accounting and Review Services (SSARSs) in specific circumstances, including engagements for entities in specialized industries. Interpretive publications are issued under the authority of the ARSC. The members of the ARSC have found this guide to be consistent with the existing SSARS.

An accountant should be aware of and consider interpretive publications applicable to his or her compilation or review. If an accountant does not apply the guidance included in an applicable AICPA Audit and Accounting Guide, the accountant should be prepared to explain how he or she complied with the applicable standards addressed by such guidance.

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