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 Accounting Standards Board’s (“FASB”) rules.
- Section 9160.33, Engagement Acceptance When a State or Local Government Elects to Follow a Special Purpose Framework. Section 9160.33 covers the auditor’s responsibilities regarding the special purpose framework a government entity’s management uses.
- Section 9160.34, Accounting Standards as Promulgated by FASB as a Special Purpose Framework. Section 9160.34 states that FASB accounting standards cannot be deemed a special purpose framework for an entity that uses the Governmental Accounting Standards Board’s (“GASB”) standards.
- Section 9160.35, Reporting on Indian Tribe Financial Statements Prepared in Accordance With Accounting Standards as Promulgated by FASB. Section 9160.35 examines whether an auditor can report that the financial statements of an Indian tribe that qualifies for the definition of a government are presented, according to both GASB and FASB GAAP.