AICPA Names Bob Dohrer Chief Auditor
In a March 27 press release, the American Institute of Certified Public Accountants (“AICPA”) announced the appointment of Robert “Bob” Dohrer, CPA, as the organization’s chief auditor. Dohrer will replace Charles Landes, CPA, who is also the AICPA’s vice president of professional standards – public accounting. Landes will retire in early 2019, but he will help with the transition when Dohrer joins the AICPA in October. Dohrer currently serves as global leader, quality and risk, for a multi-national network of accounting firms based in London. In his role as AICPA chief auditor, he will serve as the organization’s expert on. Read More.
Financial Executives Slowly Warming to Risk Management Planning
Despite the American Institute of Certified Public Accountants’ (“AICPA”) latest survey revealing organizations have inadequate risk management practices, the numbers compared to the inaugural survey have improved. The AICPA discovered that 31 percent of companies have created processes for enterprise risk management. That number is 22 percentage points higher than in 2009; only nine percent of organizations surveyed that year reported having risk management processes. The survey is part of the AICPA and North Carolina State University’s Enterprise Risk Management Initiative. Mark Beasley, the director of NC State’s ERM Initiative, said this year’s survey shows that more senior executives and. Read More.
AICPA Releases 2018 Not-for-Profit Entity Guide
This year’s edition of the Audit and Accounting Guides (“AAG”) Not-for-Profit Entities is now available. Issued last month by the American Institute of Certified Public Accountants, the 2018 guide features information about Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The Not-for-Profit, AAG also highlights the amended guidance and compares the changes to previous guidance.
FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts
AICPA Committee Proposes Updated Information System Services Interpretation
The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee (“PEEC”) has proposed amendments to its interpretation of an independence rule concerning nonattest services associated with an attest client’s information systems. Outlined in the exposure draft Proposed Revised Interpretation – Information System Services (formerly Information, Systems Design, Implementation, or Integration) , the proposed changes relate to the PEEC’s review of the “Nonattest Services” subtopic under the “Independence Rule” as well as its application to existing information technology services provided to clients. During the project, the PEEC has examined its “Information Systems Design, Implementation, or Integration” interpretation to assess major threats to independence that could occur when such services are offered. The PEEC’s proposed. Read More.
AICPA Updates SOC 2 Guide and Issues Description Criteria
Earlier this month, the American Institute of Certified Public Accountants (“AICPA”) announced the issuance of its revised SOC 2® Reporting on an Examination of Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy . The updated SOC 2 guide features insights from Certified Public Accountants (“CPAs”) who perform such engagements. CPAs must apply the updated guidance to SOC 2 reports distributed for reporting periods ending on or after December 16, 2018, with earlier adoption permitted. The AICPA has also issued the following professional standards related to the description criteria (“DC”) for SOC 2 reports: Description Criteria Section 200, Description Criteria for a Description of a Service Organization’s System in a SOC 2 Report. The 2018 description criteria. Read More.