Updated Conceptual Framework Proposal Comment Letter Approved
During its July 15th teleconference, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) approved an updated draft comment letter related to the Financial Accounting Standards Board’s (“FASB”) Proposed Statement of Financial Accounting Concepts (CON) No. 2014-200, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. Despite not providing official guidance to users of financial statements, the proposal offers guidelines for writing U.S. GAAP disclosure requirements. Signed by FinREC’s Richard Paul and Rick Day, the seven-page letter orders FASB to review current disclosure requirements, and remove repetitive disclosures and insufficient information. Per the letter, the simplification of disclosures will. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", disclosure, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Financial Statements, U.S. GAAP
AICPA’s Auditing Standards Board Issues Comfort Letters Guidance
Impacting comfort letters issued on or after December 15th, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”) has released Statement on Auditing Standards (SAS) No. 129, Amendment to Statement on Auditing Standards No. 122 Section 920, “Letters for Underwriters and Certain Other Requesting Parties,” as amended (AICPA, Professional Standards, AU-C sec. 920). The guidance applies to auditors when they issue requested comfort letters associated with a non-issuer’s financial statements contained within registration statements. When the AUs were clarified, AU-C section 920 was not intended to alter practices connected to comfort letters. However, particular unintended issues managed. Read More.
AICPA Task Force Releases White Paper on Technology & Auditing
In its efforts to create a conceptual framework and guidance on how technology impacts internal and external reporting, the American Institute of Certified Public Accountants’ (“the Institute”) Assurance Services Executive Committee Emerging Assurance Technologies Task Force has released, Re-imagining Auditing in a Wired World. Published as a white paper document, the guidance offers insight on the future of reporting and auditing systems, as well as the benefits of technology related to auditing processes. For a copy of Re-imagining Auditing in a Wired World , visit the Institute’s website. Cherry Bekaert offers Assurance services that go beyond checking the boxes, and our Technology & Life Sciences industry. Read More.
AICPA’s Auditing Standards Board to Meet in Montreal Next Week
Starting Tuesday, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) will hold a three-day meeting in Montreal, Quebec. Planned to discuss additional clarified standards, the ASB’s meeting agenda will feature: – A review of An Audit of Internal Control Over Financial Reporting That is Integrated With an Audit of Financial Statements, a proposal that would replace AT section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, and Interpretation No. 1 of AT section 501, “Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Clarified Attestation Standard, Clarified Standards, Federal Deposit Insurance Corporation Improvement Act, financial reporting
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. Read More.
Topics: AAG Standards, Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Audit, Audit and Accoutning Guide "AAG", Audit Risk, Balance Sheet, disclosure, Ethics, Financial Accounting Standards Board "FASB", Investment Companies, Investment Company Act, Professional Ethics Executive Committee "PEEC", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
FASB’s Going Concern Amendment to Affect PCAOB Standards
In the coming weeks, the Financial Accounting Standards Board (“FASB”) plans to release an amendment that requires struggling companies to inform investors regarding their chances of surviving. Entitled proposed Accounting Standards Update No. 2013-300, Presentation of Financial Statements (Topic 205)—Disclosure of Uncertainties about an Entity’s Going Concern Presumption, the update is in response to investors and regulators who believed auditors issued going concern reviews of companies after the stock price mirrored the market’s knowledge of their pending demise. Per the FASB’s final update to U.S. GAAP, a company will be required to add in its financial statement footnotes when “substantial. Read More.
Topics: Accounting Standards Update, American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Bruce Webb, disclosure, Financial Accounting Standards Board "FASB", Financial Statements, Going Concern, International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. GAAP, U.S. Securities and Exchange Commission "SEC"