Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Reminders for your 12-11 audits – Part 2 – SASs 118, 119, 120

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Here is another reminder as you start thinking about your December 2011 audits:

  • SASs 118,119, and 120 are going into effect.

These comments will be highly summarized.  If you see something that applies in your client base, get hold of the authoritative literature.

Other information – SAS 118 deals with other information in documents containing audited financial statements (hey, that’s the title of the SAS!).  For nonprofit organizations, this would apply when your client includes the audited financial statements in an annual report to donors or members.  In one sentence, you need to read the other information to make sure it is not in conflict with the audited financial statement.

Supplemental information – SAS 119 deals with those supplemental schedules that go behind the basic financial statements to help drill down into the numbers. Examples would be consolidating schedules, natural expenses for a nonprofit, or schedule of completed contracts for a contractor.  In that case there is extra work you need to do and some comments needed in the report.  Check out the literature.

Required supplementary information – SAS 120 deals with the situation when a designated accounting standard setter says there are schedules that have to accompany the basic financial statements (that would be for FASB or GASB level requirements, not GAO or other regulators). In that situation, a comment is needed in the report saying information is there and additional comments if there are problems.  Again, if this applies to your clients, check out the literature.

Remember, this is just a brief reminder!

Part 1 was here.

Written by Jim Ulvog

November 8, 2011, 12:44 pm at 12:44 pm

Posted in Audits

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