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AICPA Releases Updates to AAG Standards and Audit Risk Alert

Published on June 26th, the American Institute of Certified Public Accountants (“AICPA”) issued updates to five Audit and Accounting Guides (“AAG”). The AAG updates include the following:

  • Compilation and Review Engagements now offers interpretive guidance on recent adjustments to the Statements on Standards for Accounting and Review Services for compilation and review engagements.
  • The Construction Contractors update includes simplified versions of the Auditing Standards Board’s audit standards and Professional Ethics Executive Committee’s Ethics Code of Professional Conduct.
  • Investment Companies reflects modifications to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (ASU) No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the U.S. Securities and Exchange Commission’s Release No. 33-9506, Removal of Certain References to Credit Ratings Under the Investment Company Act, and Public Company Accounting Oversight Board’s Auditing Standard No. 17, Auditing Supplemental Information Accompanying Auditing Financial Statements.
  • Property and Liability Insurance Entities provides updated information for FASB’s ASU No. 2011-11, Balance Sheet Offsetting, and ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, and amendments to the disclosure requirements in FASB ASC 210-20-50, Balance Sheet – Offsetting – Disclosure.
  • State and Local Governments concentrates on requirements in some recent GASB standards, such as GASB Statement (GASBS) No. 61, The Financial Reporting Entity: Omnibus-an amendment of GASB Statements No. 14 and No. 34, GASBS No. 65, Items Previously Reported as Assets and Liabilities, and GASBS No. 66, Technical Corrections-2012-an amendment of GASB Statements No. 10 and No. 62.

Also recently updated was AICPA’s Audit Risk Alert, Independence and Ethics Developments. The alert includes revised definitions, and details on the interpretive guidance for nonattest services and auditor independence.

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