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AICPA Board Offers New Auditor Reporting Guidance

The American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board has released new guidance to help auditors comply with AU-C section 700, Forming an Opinion and Reporting on Financial Statements, when performing an audit under the Public Company Accounting Oversight Board’s (“PCAOB”) revised reporting standards. Issued as Interpretation No. 4, “Reporting on Audits Conducted in Accordance With Auditing Standards Generally Accepted in the United States of America and the Standards of the PCAOB,” the guidance is presented in a questions and answers format. The guidance covers standard fact patterns and includes illustrative examples and reports. Interpretation No. 4 was. Read More.

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AICPA Board Could Revise Benefit Plan Audit Proposal

The American Institute of Certified Public Accountants’ Auditing Standards Board could revise a proposal for audits of benefit plans under the Employee Retirement Income Security Act of 1974 (“ERISA”). At a meeting last month in New Orleans, the board discussed possible changes after reviewing comment letters on Proposed Statement on Auditing Standards: Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. The proposed standard aims to help auditors understand their role and provide interested parties additional information on auditors’ responsibilities, especially in circumstances when the audit’s scope is limited. After previous talks on submitted. Read More.

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AICPA Board Proposes Three Auditing Standards

The American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board recently issued the following exposure drafts of Proposed Statements on Auditing Standards (“SASs”): Proposed Statements on Auditing Standards, Auditor Reporting and Proposed Amendments―Addressing Disclosures in the Audit of Financial Statements:  The Exposure Draft proposes amendments converge the AICPA auditor reporting standards with standards of the International Standard on Auditing by the International Auditing and Assurance Standards Board (“IAASB”). The proposed changes address: Forming an Opinion and Reporting on Financial Statements; Communicating Key Audit Matters in the Independent Auditor’s Report; Modifications to the Opinion in the Independent Auditor’s Report; and. Read More.

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Audit Standard Issued for Exempt Securities Offerings

Earlier this week, the American Institute of Certified Public Accountants’ Auditing Standards Board published a new standard for auditor reports that supplement securities offerings not registered with the Securities and Exchange Commission. The new standard, Statement on Auditing Standards No. 133, Auditor Involvement With Exempt Offering Documents, will be effective for audit reports used with offerings sold on or after June 15, 2018. Municipal bonds, securities issued by nonprofits or religious organizations, crowdfunded offerings, securities issued in accordance with Regulation A, and franchise offerings qualify as securities offerings.

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Going Concern Standard Issued by AICPA Board

A new going concern standard has been released to replace Statement on Auditing Standard (“SAS”) No. 126 of the same name. Issued by the American Institute of Certified Public Accountants (“AICPA”) Auditing Standards Board (“ASB”) this week, SAS No. 132, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, provides clarity to financial statements and their associated disclosures. Several concepts of SAS No. 126 are retained in the new standard, but SAS No. 132 includes significant changes that impact: The auditor’s objectives and related conclusions; Financial support by third parties or the entity’s owner-manager; The period. Read More.

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Going Concern Standard Approved by AICPA Board

The American Institute of Certified Public Accountants’ Auditing Standards Board (“ASB”) has unanimously voted to finalize its guidance for going concern. Approved during the ASB’s four-day meeting in Fort Lauderdale earlier this month, the final standard includes recommendations from the comment letters regarding Proposed Statement on Auditing Standards (“SAS”): The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. The standard will be issued SAS No. 132: The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, and supersede SAS No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted), (AU-C Section 570). SAS No. 132. Read More.

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