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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.

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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.

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AICPA Ethics Board Issues Exposure Draft on Legal Non-Compliance

The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has proposed new interpretations concerning the AICPA Code of Professional Conduct. The two proposed interpretations are part of the Exposure Draft, Responding to Non-Compliance with Laws and Regulations , and impacts members in both public practice and business. Entitled “Responding to Non-Compliance with Laws and Regulations” under the “Integrity and Objectivity Rule”, the proposed interpretations offer guidance on a member’s responsibilities when handling non-compliance with regulations at a client or in his or her employing organization. Members that encounter non-compliance must either: Allow the client’s or employing company’s oversight and those with the authority to resolve the. Read More.

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Revenue Recognition Draft Guidance Issued for Utilities and Time-Share Companies

By  Brynn McNeil The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee has issued the following working drafts to address implementation of Accounting Standards Update No. 2016-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board (“FASB”): Working Draft: Proposed Implementation Issues for Revenue Recognition: Power & Utility Entities (#13-1): Accounting for Tariff Sales to Regulated Customers. Intended to help power and utility companies with applying ASU No. 2016-09 to revenues caused by regulated utility tariffs, this working draft explains that agreements between utilities and customers for services provided under a regulated tariff must be disclosed as a. Read More.

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Revenue Standard Working Drafts Released for Insurers & Software Companies

Two working drafts addressing implementation problems with the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard have been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee: Proposed Implementation Issues for Revenue Recognition: Insurance Entities (#9-1): Considerations for Applying the Scope Exception in FASB ASC 606-10-15-2 and 606-10-15-4 to Contracts Within the Scope of ASC 944. This working draft explains that contracts bound by the financial reporting requirements under FASB Accounting Standards Codification (“ASC”) 944, Financial Services – Insurance, are not impacted by FASB ASC 606, Revenue From Contracts With Customers. Proposed Implementation Issues for. 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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