AR-C Section 60A.14-19 says: "Complying With Relevant Requirements
.14 Subject to paragraph .16, the accountant should comply with each requirement of the relevant AR-C section unless, in the circumstances of the engagement, the requirement is not relevant because it is conditional, and the condition does not exist. (Ref: par. .A33)
Defining Professional Responsibilities in SSARSs
.15 SSARSs use the following two categories of professional requirements, identified by specific terms, to describe the degree of responsibility they impose on accountants:
• Unconditional requirements. The accountant must comply with an unconditional requirement in all cases in which such requirement is relevant. SSARSs use the word "must" to indicate an unconditional requirement.
• Presumptively mandatory requirements. The accountant must comply with a presumptively mandatory requirement in all cases in which such a requirement is relevant, except in rare circumstances discussed in paragraph .SSARSs use the word "should" to indicate a presumptively mandatory requirement. (Ref: par. .A34)
.16 In rare circumstances, the accountant may judge it necessary to depart from a relevant presumptively mandatory requirement. In such circumstances, the accountant should perform alternative procedures to achieve the intent of the requirement. The need for an accountant to depart from a relevant, presumptively mandatory requirement is expected to arise only when the requirement is for a specific procedure to be performed and, in the specific circumstances of the engagement, that procedure would be ineffective in achieving the intent of the requirement.
.17 If, in rare circumstances, the accountant judges it necessary to depart from a relevant presumptively mandatory requirement, the accountant must document the justification for the departure and how the alternative procedures performed in the circumstances were sufficient to achieve the intent of that requirement. [Paragraph added, effective October 2016, by SSARS No. 23.]
Interpretive Publications
.18 The accountant should consider applicable interpretive publications in the performance of an engagement in accordance with SSARSs. (Ref: par. .A35) [Paragraph renumbered by the issuance of SSARS No. 23, October 2016.]
Other Preparation, Compilation and Review Publications
.19 In applying the guidance included in an other preparation, compilation and review publication, the accountant should, exercising professional judgment, assess the relevance and appropriateness of such guidance to the circumstances of the engagement. (Ref: par. .A36–.A38) [Paragraph renumbered by the issuance of SSARS No. 23, October 2016.]"
Ryan A. Sawyer, CPA, PLLC
We are a Dallas, Texas CPA firm specializing in assurance services for Texas businesses in a wide range of industries and sizes.
www.SawyerAssurance.com
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