review

Updates for CPAs: going concern and location of debt issue costs

Leave a Comment / Accounting, Audits, Compilations & reviews /
Image courtesy of DollarPhotoClub before they merged into Adobe Stock.
Image courtesy of DollarPhotoClub before they merged into Adobe Stock.

The accelerating pace of change doesn’t slow down merely because I have multiple audits in progress plus more that just started. Here are a few articles to help keep all of us up to date on two newly effective standards:

Going concern

For a long time the professional requirements for addressing going concern issues have been located in the audit literature. Yeah, the accounting requirement was in the audit standards.  There has been an effort for several years to this guidance out of the SASs and into GAAP. Two articles show the substantial progress:

11/8/16 – Charles Hall at CPA-Scribo – It’s Time to Apply FASB’s New Going Concern Standard –  ASU 2014-15 creates a requirement in GAAP for management to assess whether there are conditions or events which raise substantial doubt about ability to continue as going concern.

This is effective for financial statements ending on or after December 15, 2016. Translation: 12/31/16 financial statements. That would be the ones you’re auditing or reviewing or compiling at the moment.

If you haven’t tuned into this new requirement, check out Mr. Hall’s article before you download the ASU for study. Hint: the new requirements on management will seem remarkably familiar.

In case you hadn’t thought about it, having a GAAP-based going concern requirement placed on management means that there is now a specific need to address going concern in a review or comp.

2/22/17 – Accounting Today – AICPA changes going concern audit standard – Now that the going concern requirements are in GAAP, the ASB has modified the rules in the audit literature.

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Updates for CPAs: going concern and location of debt issue costsRead More »

Updates for CPAs: going concern and location of debt issue costs Read More »

2017 Risk Alerts available

Leave a Comment / Accounting, Audits, Compilations & reviews /
Image is from AICPA. Used under Fair Use since, after all, I am promoting three of their products.
Image of Audit Risk Alert is from AICPA. Used under Fair Use since, after all, I am promoting three of their products.

The 2017 audit season is about to begin. Planning is well underway for all those 12/31 clients.

To help you get ready, the annual updates to AICPA risk alerts are available. Consider:

I read the risk alerts every year. They are great for reminding me of what I already knew and even better for pointing out what tidbits I had missed.

You might want to check them out in the lull before the rush of field work hits.

2017 Risk Alerts available Read More »

Two new SSARS documents, #22 and #23

Leave a Comment / Compilations & reviews /
Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

There are two new SSARS pronouncements. Most likely they will not be a big deal for most accountants, but if you work in the comp or review arena, you need to know they exist and you really ought to have a vague idea what is in them.

First, a tip on staying out of trouble on nonattest services…

11/1 – Journal of Accountancy – Nonattest services quiz – A great six question quiz on nonatttest services. Take the quiz to find out how well you are doing on independence and documentation requirements. By the way, if you miss some questions you probably taking out some really serious risk in your audit practice that you didn’t even know about.

This is a great opportunity to find out what you don’t know, which can hurt you.

9/23 – Journal of Accountancy – ARSC complete clarity project with issuance of SSARS No. 22 – …

Two new SSARS documents, #22 and #23Read More »

Two new SSARS documents, #22 and #23 Read More »

“Be Prepared – A Comprehensive Peer Review Update”

1 Comment / Audits, Compilations & reviews, Peer Review /
Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The following article provides a superb update on recent developments in the peer review program. The article is graciously provided by the California Society of CPAs and the information described here applies in all jurisdictions across the U.S.

Because the entire article is quoted verbatim without any additional comments from me, none of the article will be placed in quotation marks.

Originally published by CalCPA (www.calcpa.org) in the October issue of California CPA magazine.

Used with written permission of the California Society of CPAs. 

 

Be Prepared – A Comprehensive Peer Review Update

By Linda McCrone

 

Peer review is a successful program that helps firms improve their quality control systems and elevate the quality of accounting and auditing engagements. The AICPA contributed the software program that tracks peer reviews and the staff that manages the program. AICPA member volunteers contribute their time to oversee the program, keep the peer review program forms current and make certain that the peer review standards remain relevant. But like any successful program, peer review must continue to evolve to keep up with events.

 

Background

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“Be Prepared – A Comprehensive Peer Review Update”Read More »

“Be Prepared – A Comprehensive Peer Review Update” Read More »

Primer on Compilation and Preparation engagements under SSARS #21

2 Comments / Compilations & reviews /
Image courtesy of Amazon. Used for this review under Fair Use.
Image courtesy of Amazon. Used for this review under Fair Use.

Charles Hall has written a book describing a new service called ‘preparation’ and the changes for compilations from SSARS 21.

If you perform a few compilation engagements a year and have not started paying attention to the complete rewrite of comp and review rules, this is the book for you. The transition date is financial statements for years ending after December 15, 2015. Essentially this applies to all your 12/31/15 comp and review work.

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Primer on Compilation and Preparation engagements under SSARS #21Read More »

Primer on Compilation and Preparation engagements under SSARS #21 Read More »

Multiple definitions of materiality are in play

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Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

If you would like to compare the various definitions in play for materiality, then Emily Chasan has the article for you at the Wall Street Journal on 11/3:  Definition of Materiality Depends Who You Ask.

The definition readers of this blog have incorporated deep into their brain is from FASB, as follows:

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Multiple definitions of materiality are in playRead More »

Multiple definitions of materiality are in play Read More »

Price cut on print books

Leave a Comment / Accounting, Audits, Books you might enjoy, Compilations & reviews, Fraud /

I’ve dropped the prices for the print copies of my books available at Amazon, Barnes & Noble, and iTunes store.

Here is what you can find on-line:

tragedy-cover

 Tragedy of Fraud – Insider Trading Edition

Story of Scott London’s fall from regional audit partner at KPMG to prison inmate because of his insider trading.

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Price cut on print booksRead More »

Price cut on print books Read More »

CPE courses on SSARS 21 in development

Leave a Comment / Compilations & reviews /

I’m in the process of writing and rewriting a series of CPE courses on compilations, reviews, and preparation services. These courses will describe the changes made from SSARS #21, which is a major rewrite of the comp and review rules. 

These courses will be a major overhaul of what I wrote three years ago for CCH.

Stay tuned for more info as the courses become available.

Here’s the courses on SSARS 19 I wrote or updated:  …

CPE courses on SSARS 21 in developmentRead More »

CPE courses on SSARS 21 in development Read More »

Effective date of SSARS #21 and ideas on how to use the early implementation option

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The effective date of each section of SSARS #21 is for financial statements for periods ending on or after December 15, 2015.

On a practical basis, for most accountants that means your clients with fiscal years ending December 31, 2015 will be the first set of reports for which you must apply SSARS 21. I have to simplify effective dates to keep them straight, so here goes:  SSARS 21 applies for 12/31/15 balance sheets.

That means you will need to apply SSARS 21 for work performed in early 2016 on 12/31/15 financials.

Early implementation allowed

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Effective date of SSARS #21 and ideas on how to use the early implementation optionRead More »

Effective date of SSARS #21 and ideas on how to use the early implementation option Read More »

Flash update on SSARS #21

2 Comments / Compilations & reviews /

The new statement that overhauls the SSARS body of knowledge and opens up a new service called preparation was released on October 23, 2014.

Update – See also:

From the 30,000 foot level, here are just a few changes:

Flash update on SSARS #21 Read More »

SSARS #21 to be released today (10-23) – 2 hour AICPA webcast to describe changes

Leave a Comment / Compilations & reviews /

SSARS #21 is an overhaul of the entire body of SSARS. It will be released today. I’ll have lots of discussion of the document over the next few weeks.

The AICPA is presenting a 2 hour CPE webcast today at 2 Eastern Time. Cost is $99 for one attendee, with discounts for multiple people.

Check out Understanding the SSARS 21 Clarification and Revision.

Great course to listen to if you aren’t going to be at the always superb CalCPA A&A conference.

Update – See also:

SSARS #21 to be released today (10-23) – 2 hour AICPA webcast to describe changes Read More »

SSARS 21 will be issued 10/23; will allow “preparation” and revise comp & review standards

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The rewrite of SSARS into clarified format will be issued this week, Thursday, October 23.

Here is a one sentence summary: The new document will completely rewrite the SSARS literature, will add a new service called “preparation”, and will add new requirements for comps & reviews.

For a bit more information, check out AICPA Modernizes Non-Audit Standards for Accountants in Public Practice.

SSARS 21 will be issued 10/23; will allow “preparation” and revise comp & review standards Read More »