Jim Ulvog

Filling up a bucket – word picture for levels of assurance in audit, review, and compilation

Leave a Comment / Audits, Compilations & reviews /

           

In a webcast on August 31, 2011, Mr. Michael Glynn, CPA, of the AICPA staff, gave a wonderful word picture of the levels of assurance in a review and audit.  Here’s his idea:  Filling up a bucket with procedures produces different levels of assurance.  I would like to expand Mr. Glynn’s description and provide an illustration.

  • In an audit, the accountant provides obtain reasonable assurance that there are no material errors in the financial statements.
  • In a review, the accountant provides obtain limited assurance that there are no material errors in the financial statements.
  • In a compilation,the accountant does not provide obtain any assurance that there are no material errors in the financial statements.

Notice the similarity and difference?  The overlap between these definitions is how much assurance the accountant provides obtains that there are no material errors in the financial statements.

The differences? …

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Filling up a bucket – word picture for levels of assurance in audit, review, and compilation Read More »

Scam watch – you don’t have to pay someone $370 to help renew your fictitious business name

Leave a Comment / Other stuff /

(cross-post from my other blog – Nonprofit Update)

If you want to conduct your ministry or business using anything other than your legal name, you have to get a fictitious business name.  This is also called a DBA, or “doing business as” name.

Let’s say you are on staff at Southside Community Church and are starting a major summer program as an outreach to the community.  This would be a big, ongoing project. If you’re going to be collecting money and trying to reach out beyond your local congregation, you just might decide to run the program under the name Southside Summer Swim.  If that is the case, you need to file for a fictitious business name with the county clerk’s office.

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Scam watch – you don’t have to pay someone $370 to help renew your fictitious business nameRead More »

Scam watch – you don’t have to pay someone $370 to help renew your fictitious business name Read More »

Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19

Leave a Comment / Audits, Compilations & reviews /

How can management be response for financial statements and internal control for preparation of the financials when the accountant prepares them?  That is what the second paragraph in the compilation and review report say.  See thumbnail picture of the reports here.  See sample reports here and here.

In a webcast on August 31, 2011, Mr. Michael Glynn, CPA, from the AICPA, gave a fantastic word picture for how management can be responsible for the report and internal control.

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Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19Read More »

Children in school as illustration for management’s responsibility over financial statements – a word picture for SSARS 19 Read More »

Thumbnail description of compilation and review reports

1 Comment / Compilations & reviews /

I listened to a webcast from Michael Glynn, CPA, Senior Technical Manager at the AICPA.  He touched on a number of post-implementation issues from SSARS 19.  His presentation is a variation of the article he wrote for the Cal Society magazine, which I discussed here and here. I will condense and expand on some of his points.

Thumbnail view of compilation report

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Thumbnail description of compilation and review reportsRead More »

Thumbnail description of compilation and review reports Read More »

Online security primer from Facebook

Leave a Comment / Other stuff, Social media /

Facebook has posted a really good guide to online security:  Own Your Space – A Guide to Facebook Security

It is focused on Facebook, of course. It also has a lot of good stuff, such as general discussion of how to recognize a scam as a scam.  Good ideas on general defensiveness when online. 

Would be good for your staff to read it.  …

Online security primer from FacebookRead More »

Online security primer from Facebook Read More »

Happy birthday to Nonprofit Update

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(cross-post from my other blog, Nonprofit Update.)

It has been one year since I launched Nonprofit Update. On August 29, 2010 I started this blog to talk about issues affecting the nonprofit community. On October 14, 2010 I started moving topics of more interest to CPAs to a new blog, Attestation Update.

Many thanks to all who have stopped by to read!  This has been fun and I look forward to many more years of blogging.

Here are some stats from the first year for those who are interested in such things.

Number of posts: …

Happy birthday to Nonprofit UpdateRead More »

Happy birthday to Nonprofit Update Read More »

Two more CPE classes on SSARS are available

Leave a Comment / Compilations & reviews /

(cross-post from my other blog, Nonprofit Update)

Earlier this year I wrote a CPE course on SSARS requirements for CCH . Back in April I mentioned Compilation and Review: Practice Issues (Third Edition) was available. Discussed that course here.  Two more SSARS classes I wrote are now online.  Another will be available soon.  Each of the following classes are two CPE hours.

Compilation and Review: Introduction.  Course description from CCH:

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Two more CPE classes on SSARS are availableRead More »

Two more CPE classes on SSARS are available Read More »

Technology bringing fee reductions to legal work

Leave a Comment / Pondering /

Technology is starting to produce new business models for providing legal services, especially for big projects.

Why discuss this in an accounting blog? We CPAs need to be attentive to what is happening around us. We need to be armchair futurists, as I’ve discussed on my other blog.

The Economist has a great article, Alternative Law Firms – Bargain Briefs, describing some new models.

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Technology bringing fee reductions to legal workRead More »

Technology bringing fee reductions to legal work Read More »

Other than being almost impossible to implement, audit firm rotation is a great idea

1 Comment / Audits /

Jim Peterson points out several rather severe problems with mandatory firm rotation.

Mandatory Auditor Rotation – The PCAOB Sails Off the Charts into the waters where

the legend written on the old flat-earth maps – that beyond the horizons of ignorance, (says) “there be dragons.”

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Other than being almost impossible to implement, audit firm rotation is a great ideaRead More »

Other than being almost impossible to implement, audit firm rotation is a great idea Read More »

PCAOB opens discussion on mandatory audit firm rotation

Leave a Comment / Audits /

PCAOB issued a concept release to open discussion of mandatory audit firm rotation.

The Journal of Accountancy has some background at PCAOB Opens Discussion on Audit Firm Rotation.

The concept release is here.

P.S. I try not to release more than 1 post per day, but have a bunch of drafts I want to get posted, so here is #2 for the day.

PCAOB opens discussion on mandatory audit firm rotation Read More »

You probably should check your LinkedIn privacy settings

1 Comment / Social media /

Looked at my settings. Much to my surprise, I found out I had opted-in to have my name and photo included in ads for products. Might be worth checking your settings.

First tidbit – social ads. Technique of using your photo and name on ads shown to people in your network for items that you have recommended or followed.

Second tidbit – you have to opt-out of social ads at LinkedIn.

How?

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You probably should check your LinkedIn privacy settingsRead More »

You probably should check your LinkedIn privacy settings Read More »

PCAOB will meet to discuss a concept statement about asking for comments on maybe requiring mandatory firm rotation.

Leave a Comment / Audits /

Still quite iffy. PCAOB is thinking about maybe asking for reaction to the idea.  A long way from implementation, but it is the next step on that path.

John Hufnagle has a few more words on the topic at Audit Firm Rotation – The Train Is Starting Its Engine. Gotta’ love the title of his post!

I think it is a bad idea. …

PCAOB will meet to discuss a concept statement about asking for comments on maybe requiring mandatory firm rotation.Read More »

PCAOB will meet to discuss a concept statement about asking for comments on maybe requiring mandatory firm rotation. Read More »