Author: Jennifer Louis

New Lease Accounting Standards Released Related to Topic 842

Two new accounting standards impacting the implementation of ASU 2016-02, that created Leases (Topic 842), were recently released.  ASU 2018-11 contains targeted improvements, and ASU 2018-10 contains codification improvements. The codification improvements affect narrow aspects of the lease...


GAO Issues Revised Yellow Book Standards…Finally!!!

Revised standards issued July 17, 2018 by the U.S. Government Accountability Office (GAO) are designed to provide a framework for high-quality governmental audits, which include audits of government entities and entities receiving government awards. Also known as the “Yellow Book,” the...


New Definition of a Business

ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business revised the definition of a business, which will reduce the number of transactions that are accounted for as “business combinations” versus “asset acquisitions”. The following are two very important...


SSARS No. 24 – New Requirements for Compilations and Reviews

The purpose of this new omnibus statement is to amend Statement on Standards for Accounting and Review Services (SSARS) in various ways, as briefly highlighted below. Adds AR-C section 100, Special Considerations – International Reporting, which addresses when an accountant is engaged to perform a...


Proposed Ethics Interpretation - Knowing Misrepresentations in the Preparation and Presentation of Information

AICPA Members in business may be involved in the preparation and presentation of information for use both internally and externally to an employing organization. This includes financial and non-financial information, such as performance reports, budgets, forecasts, tax returns, and more. Members who...


The AICPA Releases Interpretation on Dual-Audit Reporting

The Auditing Standards Board (ASB), who promulgates generally accepted auditing standards (GAAS), recently released an interpretation to help any auditor of a “nonissuer” comply with reporting requirements under both AU-C Section 700, Forming an Opinion and Reporting on Financial Statements, and...


The Latest Independence Impairment Concern – Hosting Your Client’s Data

The AICPA Code of Professional Conduct “Independence Rule” Section 1.295.143 relates to Hosting Services.  Under this newest rule, a CPA’s independence is impaired when taking responsibility for hosting an attest client’s data or records (whether hard copy or electronic).  This action is...


Private Entities Should Explore Using a GAAP Alternative to Prepare Financial Statements

The Financial Reporting Framework for Small- and Medium-Sized EntitiesTM (FRF for SME’s) was created by the AICPA in 2013.  The intent was to give owner-managed, privately-held businesses a GAAP alternative that would cost-effectively produce relevant, yet simplified, financial statements for the...


Auditing Standards Board Releases Exposure Draft on Audit Reports

In November 2017, the AICPA Auditing Standards Board (ASB) released three proposals related to enhancing the relevance and usefulness of audit reports on financial statements of nonissuers.  They also seek to converge with recently revised audit guidance promulgated by the International Auditing...


Results of PCAOB’s Latest Staff Inspection Brief on Audits of Issuers

The PCAOB prepares Staff Inspection Briefs to assist auditors, audit committees, investors, and preparers in understanding the results of inspections of issuer audits.  The following highlight some of the more significant findings from the 2016 inspection cycle, which were the result of examining...


COSO’s New Enterprise Risk Management Framework

In June 2017, the Committee of Sponsoring Organizations (COSO)released Enterprise Risk Management – Integrating with Strategy and Performance (ERM), which is an updated version of Enterprise Risk Management – Integrated Framework (2004).  Every decision made in pursuit of an organization’s...


New FASB ASU on Derivatives and Hedging

ASU No. 2017-12, Derivatives and Hedging (Topic 815) provides targeted improvements to accounting for hedging activities, rather than a complete overall.  The goal was to ease burdensome accounting rules for financial statement preparers, and make the presentation of hedge accounting information...


Auditing Standards Board Update: Exempted Offerings

There are an increasing number of opportunities for nonpublic entities to raise funds; for example, crowdfunding, private placement offerings, franchise offerings, issuing municipal securities, or even issuing digital currency. The related offering documents may not be SEC regulated, as they are...


AICPA Answers Internal Control Technical Questions

In April 2017, the AICPA released several nonauthoritative answers to technical questions, which are based on matters identified from questions received into the AICPA’s technical hotline and other sources. The following summarizes the guidance provided in Section 8200, Internal Control: Auditors...


PCAOB Issues New Audit Report Requirements

The Public Company Accounting Oversight Board (PCAOB) approved a new format for audit reports of public companies, with the overall goal of providing more transparent and useful information to investors and other financial statement users.  AS 3101, The Auditor’s Report on an Audit of...