Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Reporting restatements to the California Board of Accountancy

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If you report on financial statements with a restatement of prior year numbers, you may have to notify the CBA.

The board has a very brief summary of the three circumstances when you have to notify them in the current issue of their newsletter, Update.  You can see the short article on page 10 of this issue.

Here is my really fast summary –

You have to self-report the restatement to the board if there is a restatement of financials for:

  • publicly traded company that files a tax return with FTB.
  • government agency in California then the restatement is greater than planning materiality for the current year audit.
  • NPO that is registered with the AG’s Registry of Charitable Trusts and there was an amended 990.

If you even get close to one of those situations, better check out the full article.  Better yet, check the regs.  If you get into one of those situations, don’t go with my compresses summary, or even an article in Outlook.

Three observations on reporting restatements for NPOs. 

  • The organization has to be registered with the AG, which means restatements of a church’s or religious organization’s financial statements don’t have to be reported. 
  • The restatement triggered an amended 990.  
  • There is a conjunction in that condition, meaning the organization has registered with the AG and there was an amended 990.

Written by Jim Ulvog

January 6, 2012, 8:24 am at 8:24 am

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