New Code of Professional Conduct Ethics Interpretations Issued
The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee has published the following new interpretations of the Code of Professional Conduct: Hosting Services (ET sec. 1.295.143) under the Independence Rule (ET sec. 1.200.001). Effective September 1, 2018, this interpretation offers guidance in circumstances when a member providing non-attest services, and the member is the sole host of a financial or non-financial information system for an attest client, in charge of or protecting the client’s data or records or keeping electronic security or reserve services for an attest client’s data or records. Pressure to Breach the Rules (ET sec.. Read More.
FASB Member Says No Major Accounting Changes Coming
In the last 18 months, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Updates (“ASU”) for leases, credit losses, and revenue recognition. FASB member Christine Botosan, however, stated last week that the board has no immediate plans to publish additional major accounting changes. During the American Institute of Certified Public Accountants’ Not-for-Profit Conference in Maryland, Botosan assured attendees by announcing the board’s plans to pause on adding major accounting standards to its agenda. Botosan said the FASB is considering undertaking other significant accounting projects, but is also aware of how much effort goes into complying with ASU No.. Read More.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Leases (Topic 842), Revenue From Contracts With Customers, Revenue Recognition
AICPA Group Seeks Academic Research on Audit Work of Private Companies
The American Institute of Certified Public Accountants’ (“AICPA”) Assurance Research Advisory Group (“ARAG”) is seeking proposals for academic research on the auditing process. Announced by the ARAG on June 1, the research will be used to help the AICPA’s standard-setting efforts for private businesses and the Enhancing Audit Quality initiative. Proposals are due Tuesday, October 6. Grants funding academic research efforts will be announced before February 28, 2018.
Final Standard for Securities Offerings Documents Approved
Last month, the American Institute of Certified Public Accountants’ Auditing Standards Board unanimously approved a final standard concerning an auditor’s responsibility regarding securities offerings documents not registered with the Securities and Exchange Commission (“SEC”). The final standard will likely be issued as Statement on Auditing Standards No. 133: Auditor Involvement With Exempt Offering Documents. It would impact securities that are not required to follow the SEC’s registration requirements and rules under the Securities Act of 1933. In addition, the standard will affect franchise offerings controlled by the Federal Trade Commission or appropriate state franchise laws. The standard could become effective. Read More.
Comment Period for AICPA Ethics Board Proposal Ends Friday
Tomorrow is the last day to comment on an Exposure Draft by the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee. The Exposure Draft, Proposed Interpretations — Responding to Non-Compliance with Laws and Regulations, introduces new interpretations of the AICPA Code of Processional Conduct. The proposed new interpretations are entitled “Responding to Non-Compliance with Laws and Regulations” (ET sec. 1.170.010 and 2.170.010) under the “Integrity and Objectivity Rule” (ET sec. 1.100.001 and 2.100.001), and will impact members in public practice and business. The new interpretations offer guidance on a member’s responsibilities when handling non-compliance with regulations at. Read More.
AICPA Releases Cybersecurity Reporting Framework Criteria
In support of its proposed cybersecurity reporting framework, the American Institute of Certified Public Accountants (“AICPA”) has issued the following criteria: Description criteria for management’s description of an entity’s cybersecurity risk management program. 2017 trust services criteria for security, availability, processing integrity, confidentiality, and privacy. This month, the AICPA plans to publish a cybersecurity attestation guide to help CPAs report on cybersecurity examination engagements compliant with the AICPA attestation standards. Once the guide is published, the Center for Audit Quality will issue The CPA’s Role in Addressing Cybersecurity Risk: How the Auditing Profession Promotes Cybersecurity Resilience. The publication will offer. Read More.