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Exposure Draft for Proposed SSAE on Internal Controls Issued

An exposure draft on proposed Statement on Standards for Attestation Agreements (SSAE), Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting: Clarification and Recodification has been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”). Issued as part of the Board’s clarity drafting project, the proposed SSAE will replace AT section 801, Reporting on Controls at a Service Organization, and relate to a service auditor’s examination engagements when reporting on controls at organizations that offer services to user entities when such controls could apply. Read More.

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AICPA Auditing Standards Board Releases Agenda for October Meeting

Hosted at the American Institute of Certified Public Accountants (“AICPA”) offices in New York City, the organization’s Auditing Standards Board (“ASB”) is scheduled to meet October 21st-23rd. The meeting will cover various topics, including Attestation Standards: Clarification and Recodification, and proposed revisions of the first four chapters. Further, the agenda includes a possible revision of AU-C 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, auditor’s reports, competency model and performance audits. Meeting information and the event’s detailed agenda are available on the AICPA’s website.

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AICPA’s Auditing Standards Board Releases Proposed Statement on Auditing Standards

Featuring conforming amendments related to sections in Statement on Auditing Standards (SAS) No. 122, Statements on Auditing Standards: Clarification and Recodification, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board has issued an exposure draft for proposed SAS: An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements. The Auditing Standards Board decided to remove existing AT section 501 information from the attestation standards and incorporate within generally accepted auditing standards (GAAS) because the attestation requirements required the examination be performed with an audit of the financial statement. Along with the. Read More.

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Significant Proposed Changes to DFARS Business System Monitoring Requirements

On July 15, 2014, the Department of Defense (“DoD”) issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) on government contractor business system requirements. The comment period for the proposed change ended on September 15, 2014. The proposed rule requires that contractors begin annual self-evaluations and reporting on their accounting system, material management and accounting system (MMAS), and estimating system, for those contractors required to maintain approved systems in accordance with the DFARS business system requirements. In addition, a Certified Public Accountant (CPA) audit is required to be performed by an independent firm of the contractor’s. Read More.

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PCAOB Issues Staff Audit Practice Alert on Revenue Requirements

To help with auditing revenue requirements listed under its standards, the Public Company Accounting Oversight Board (“PCAOB”) has issued Staff Audit Practice Alert No. 12: Matters Related to Auditing Revenue in an Audit of Financial Statements. The release is a result of audit shortcomings commonly found in PCAOB inspections. Per the inspection reports, revenue has been frequently noted as a major audit deficiency. Staff Audit Practice Alert No. 12 discusses matters such as: Testing revenue recognition from contractual arrangements; Responding to material misstatement risks as a result of fraud related to revenue; Assessing and reviewing controls over revenue; Using audit sampling procedures to test revenue; Performing. Read More.

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COFAR Issues New FAQs on Uniform Guidance for Federal Awards

To answer grant stakeholder questions about the new Uniform Guidance for Federal Awards , the Council on Financial Assistance Reform (“COFAR”) on Friday issued Frequently Asked Questions For The Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards At 2 CFR 200 . The new frequently asked questions document (FAQ) covers parts of 2 C.F.R 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and incorporates the February document released by the COFAR. Furthermore, the Governmental Audit Quality Center (“GAOC”) is reviewing the FAQ document and plans to issue a GAQC Alert with additional information soon. In the meantime, register for the Firm’s upcoming free live webinar, Supercircular 101—Proposed New Regulations for Grant Requirements and Compliance” .

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