Wiley Practitioner's Guide to GAAS 2015: Covering all SASs, SSAEs, SSARSs, PCAOB Auditing Standards, and Interpretations

AR 600 Reporting on Personal Financial Statements Included in Written Personal Financial Plans¹

ORIGINAL PRONOUNCEMENT

Original Pronouncement

Statement on Standards for Accounting and Review Services (SSARS) 6.

APPLICABILITY

This section applies when an accountant wishes to opt for an exemption from AR Section 80 for certain personal financial statements included in written personal financial plans. The section does not preclude an accountant from complying with AR Section 80.

DEFINITIONS OF TERMS

This section does not contain any definitions.

OBJECTIVES OF AR SECTION 600

Personal financial statements included in personal financial plans (1) frequently omit disclosures and (2) contain departures from the applicable financial reporting framework. If the purpose of those financial statements is solely to assist in developing the personal financial plan, Section 600 provides for an exemption from AR Section 80 and an alternative report that should be used if the exemption is followed.

FUNDAMENTAL REQUIREMENTS

Exemption

According to AR 600.03, an accountant may submit a written personal financial plan containing unaudited personal financial statements to a client without following AR Section 80, if:

1. The accountant establishes an understanding, preferably in writing, with the client that the personal financial statements will:
   1. Be used solely to assist the client and his or her advisers to develop the client's personal goals and objectives
   2. Not be used for credit ...