Exposure Draft Issued on SOC 2 Description Criteria
As a result of its decision to publish a standalone document describing a service organization’s system, the American Institute of Certified Public Accountants (“AICPA”) recently issued the exposure draft, Proposed Revision of Description Criteria for a Description of a Service Organization’s System in a SOC 2(R) Report. The proposed revision of the SOC 2 description criteria will be separate from the AICPA Guide, Reporting on an Examination of Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (SOC 2®), and codified in AICPA Professional Standards as measurement criteria. Also, additions to future Guide revisions will. Read More.
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.
Topics: AICPA, AICPA Auditing Standards Board, American Institute of Certified Public Accountants "AICPA", Audit Standard, Nonprofits, Securities and Exchange Commission "SEC", Securities Offerings, Statement on Auditing Standards "SAS"
AICPA Publishes New Technical Questions and Answers
The following Technical Questions and Answers guidance was issued by the American Institute of Certified Public Accountants (“AICPA”) under Section 9160, Other Reporting Issues: Section 9160.31, Following Accounting Standards as Promulgated by FASB by a State or Local Governmental Entity. Section 9160.31 covers how an auditor should decide whether a government entity is following the applicable accounting standards. Section 9160.32, Reporting on Accounting Standards as Promulgated by FASB by a State or Local Government. Section 9160.32 offers guidance on how an auditor should report on a government entity’s financial statements, when the entity prepares its financial statements under the Financial. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", GASB, Governmental Accounting Standards Board "GASB", state and local governments, Technical Questions & Answers, U.S. GAAP
AICPA Seeks to Preserve Use of Cash Method Accounting
The American Institute of Certified Public Accountants (“AICPA”) wants Senate Finance Committee Chairman Orrin Hatch to prevent restricting the use of cash method accounting. In a July 17 letter to Hatch on Congress’ current tax reform efforts, the AICPA said cash method accounting provides a simpler application choice than the accrual method. In addition, the AICPA argued that the cash method creates fewer compliance expenses, and taxpayers aren’t required to pay tax prior to receiving related income. Companies that apply cash accounting disclose revenue and costs when they are received and paid. Small companies with yearly gross receipts of under. Read More.
AICPA Advises Nonprofits on Financial Reporting Model Changes
In the first of a two-part blog series on its website, the American Institute of Certified Public Accountants (“AICPA”) discusses the upcoming changes to the nonprofit financial reporting model. The changes are part of the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, which affects certain line items on nonprofits’ financial statements. The blog series’ first installment features suggestions on an organization’s chart of account modifications in five areas: liquidity, net assets, investment return, statement of cash flows and expense reporting. To read part one of the blog series, visit AICPA.org.
AICPA Committee Proposes Interpretation for Long Association
As part of its convergence project with the International Ethics Standards Board for Accountants, the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has released the exposure draft, Proposed Interpretation –Long Association of Senior Personnel With an Attest Client). The proposal concerns independence threats when an attest client has a long association with senior personnel. The Committee’s proposed Interpretation would state that an AICPA member’s lengthy inclusion among the attest engagement team’s senior personnel could cause a familiarity threat with the attest client. The familiarity threat could also extend to the team’s operations, senior management of the. Read More.
Topics: AICPA, AICPA Professional Ethics Executive Committee, American Institute of Certified Public Accountants "AICPA", International Ethics Standards Board for Accountants "IESBA", Long Association