Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Posts Tagged ‘clarified audit standards

Clarified audit standards can be used for audits before the effective date

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Here’s a tricky situation for you. A client retained your firm to audit their ’13, ’12, and ’11 calendar year financial statements so they can get their first bank loan. The clarified audit standards apply to the ’13 and ’12 financials, since the effective date was years ending after 12/15/12.

What audit standards do you use to audit the ’11 financials?

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Written by Jim Ulvog

May 13, 2014, 7:47 am at 7:47 am

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Auditors need to verify the addresses on confirmations. Oops.

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Clarified section 505, which you can find here, discusses external confirmations.  One thing I missed previously is a new requirement to verify the address used on confirmations. I looked in the pre-clarity standards and couldn’t find that requirement there.

Put simply, we as auditors need to make sure confirmations are using good addresses.

For cash, there is a commercial service, Confirmation.com, that can be used to make sure your confirm gets to where you want it to go.

This issue also applies to:

  • Accounts receivable
  • Notes receivable
  • Investments
  • Accounts Payable
  • Notes Payable

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Written by Jim Ulvog

August 2, 2013, 9:12 am at 9:12 am

Double check your revised audit opinions with the AICPA Peer Review checklist

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You recall that your audit opinions will be completely revised starting with December 31, 2012 financial statements. The opinion is completely different.

I’ve discussed that here and here with sample reports.

After you draft your reports with the practice tools used by your firm, it would be wise to double-check them. What to use?

Check out Charles Hall’s article – The Clarity Project – Vetting Your Clarity Opinions with the AICPA Peer Review Checklist.

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Written by Jim Ulvog

March 7, 2013, 8:03 am at 8:03 am

3 major changes from clarified audit standards – high level overview

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The AICPA has a very short article that highlights three of the many major changes. See How the Clarified Auditing Standards Will Affect You.

The highlights: Read the rest of this entry »

Written by Jim Ulvog

January 2, 2013, 7:24 am at 7:24 am

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New audit opinion for 2012 – example for NPO client of one-partner or multi-partner firm

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One of the biggest changes in the clarified audit standards is a new audit report.  It will apply for audit reports issued in 2013 for our 12-31-12 clients. 

This will be a biggie for 2013 work.

I previously provided a sample audit report for a commercial client of a one partner firm.  Here is a sample report for nonprofit organizations I plan to use in my practice.

The new opinion is discussed in AU-C Section 700, Forming an Opinion and Reporting on Financial Statements.

You can find all the new clarified standards on this page at the AICPA website.  You can click directly to section 700 here.

Here is the new report for an NPO, set up with options for a one partner or multi-partner firm.  Don’t forget the title, Independent Auditor’s Report. That is part of the report.

Independent Auditor’s Report

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Written by Jim Ulvog

December 28, 2012, 7:23 am at 7:23 am

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New audit opinion for 2012 – example for commercial client of one-partner firm

with 2 comments

A brand new audit report is one of the biggest changes in the clarified audit standards.  It will apply for audit reports issued in 2013 for our audits of 12-31-12 financial statements.

This is a biggie.

The new opinion is discussed in AU-C Section 700, Forming an Opinion and Reporting on Financial Statements.

You can find all the new clarified standards on this page at the AICPA website. You can click directly to section 700 here.

Here is the new report, adjusting pronouns to a one partner firm. Don’t forget the title, Independent Auditor’s Report:

Independent Auditor’s Report

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Written by Jim Ulvog

December 27, 2012, 7:55 am at 7:55 am

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