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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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AICPA Auditing Standards Board to Meet in Florida

Starting Monday, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board will hold a four-day meeting in Fort Lauderdale, Florida. Cherry Bekaert’s Melisa Galasso will attend a portion of the meeting as a member of the AICPA’s Technical Issues Committee. According to the meeting agenda , the Auditing Standards Board is expected to vote on proposed AU-C section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. In addition, the board is expected to approve an exposure draft of proposed Statements on Auditing Standards No. 13x, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans. Read More.

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Sustainability Guide Coming in 2017

Early next year, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) is expected to publish its guide on sustainability reporting. The forthcoming Audit and Accounting Guide will be based on an ASB task force’s work on a proposed Standard for Attestation Engagements concerning sustainability. Plans for the formal standard were scrapped in May. During Baruch College’s Audit Conference this week, ASB chair Michael Santay said the board wants to provide auditors and their clients a framework until clear financial reporting and auditing guidelines for sustainability emerge. The ASB will count on sustainability reporting groups like the. Read More.

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