-
Comment letters 284-403 for exposure draft proposed statement on standards for accounting and review services: Assembly of financial statements for internal use only;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters 404-522 for exposure draft proposed statement on standards for accounting and review services: Assembly of financial statements for internal use only;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters, personal financial planning exposure draft 8/15/95: proposed statement on responsibilities in personal financial planning Practice: Developing a basis for recommendations;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment Letters Received On the April 14, 1995 Exposure Draft of a Proposed Audit & Accounting Guide Not-for-Profit Organizations VOL. 2 (79-155);
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters to Exposure draft, Amendment to statement on auditing Standards no. 58, 'Reports on audited financial statements';
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters to Exposure draft, Proposed statement of position : Environmental remediation liabilities (including auditing guidance);
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters to exposure draft: Proposed statements on quality control standards : System of quality control for a CPA firm's accounting and auditing practice, and Monitoring a CPA firm's accounting and auditing practice;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment Letters to proposed audit and accounting guide: Health Care organizations;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Proposed statement of position : accounting by participating mortgage loan borrowers ;Accounting by participating mortgage loan borrowers; Exposure draft (American Institute of Certified Public Accountants), 1995, July 5
American Institute of Certified Public Accountants. Accounting Standards Executive Committee and American Institute of Certified Public Accountants. Participating Mortgages Task Force
This proposed statement of position (SOP) establishes the borrower's accounting for a participating mortgage loan if the lender participates in increases in the market value of the mortgaged real estate project, the results of operations of that mortgaged real estate project, or both. This proposed SOP requires the following: 1. At origination, the borrower should record the participating mortgage loan without allocating any of the proceeds to a liability related to the participation feature. 2. At the end of each reporting period, a participation liability should be reported equal to the amount that would be required to extinguish the participation liability if (a): the participating mortgage loan matured or was refinanced at that date, or (b) the mortgaged property was sold at that date. When establishing or adjusting the participation liability, the corresponding charge or credit should be to debt discount. 3. As estimates of the participation liability change because of changes in estimates of the market value of the property, the borrower should recalculate the effective interest rate to reflect the changes in expected future payments. The borrower should recalculate that rate assuming that (a) the amount of the expected future payment will be paid on the due date of the loan and (b) the recalculated expected future payment amount was known at the inception of the loan. The debt discount related to the participation liability should be adjusted, with a corresponding charge or credit to interest expense, to the amount that would have existed had the new effective interest rate been applied since the origination of the participating mortgage loan. 4. Certain disclosures must be included in the financial statements. This proposed SOP is effective for fiscal years beginning after June 15, 1996. Earlier application is encouraged. The effect of initially applying this proposed SOP should be reported in a manner similar to that of the cumulative effect of a change in accounting principle.
-
Comment letters on on the exposure draft, "Amendments to Statements on Auditing Standards and Statements on Standards for Attestation Engagements to Incorporate the Internal Control - Integrated Framework Report."
American Institute of Certified Public Accountants. Auditing Standards Board
-
Comment letters on proposed exposure draft Omnibus Statement on Auditing Standards and Statements on Standards for Attestation Engagements - 1995.
American Institute of Certified Public Accountants. Auditing Standards Board
-
Comment letters received on AcSEC's October 10, 1994 exposure draft, Reporting by Real Estate Companies of Supplemental Current-Value Information
American Institute of Certified Public Accountants. Auditing Standards Board
-
Proposed statement on auditing standards : amendment to Statement on auditing standards no. 58, Reports on audited financial statements;Amendment to Statement on auditing standards no. 58, Reports on audited financial statements; Exposure draft (American Institute of Certified Public Accountants), 1995, July 20
American Institute of Certified Public Accountants. Auditing Standards Board
In making this proposal to eliminate the requirement that, when certain criteria are met, the auditor add an uncertainties explanatory paragraph to the auditor's report, the Auditing Standards Board (ASB) considered the following factors: 1. The issuance of Statement of Position (SOP) 94-6, Disclosure of Certain Significant Risks and Uncertainties, and previous changes to accounting standards have significantly improved the disclosure of risks and uncertainties in financial statements. 2. Under existing reporting standards, the absence of an uncertainties explanatory paragraph in the auditor's report could cause financial statement users to incorrectly conclude that the entity faces no significant risks or uncertainties. The current standard, therefore, has the potential to distract financial statement users from financial statement disclosures, including the disclosures required by SOP 94-6. 3. Existing reporting standards provide the auditor with the option of emphasizing a matter regarding the financial statements in the auditor's report by adding a separate paragraph to the report. This option is available to the auditor when he or she wishes to emphasize significant risks and uncertainties disclosed in the financial statements. 4. The required uncertainties explanatory paragraph does not and should not communicate new information to financial statement users. Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 5, Accounting for Contingencies, and SOP 94-6 establish standards for the disclosure of contingencies and certain significant estimates. If the financial statement disclosures are inadequate, the auditor is required to express a qualified or adverse opinion on the financial statements because of departures from generally accepted accounting principles (GAAP). 5. This proposal does not affect the provisions of Statement on Auditing Standards (SAS) No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (AICPA, Professional Standards, vol. 1, AU sec. 341) which requires that the auditor add an explanatory paragraph to the auditor's report when there is substantial doubt about an entity's ability to continue as a going concern. This proposed Statement amends SAS No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards vol. 1, AU sec. 508). Among the more significant provisions of the proposed Statement are amendments that: 1. Eliminate the requirement that, when certain criteria are met, the auditor add an uncertainties explanatory paragraph to the auditor's report. 2. Expand the guidance in paragraph 37 of SAS No. 58 to indicate additional matters the auditor may wish to emphasize in the auditor's report. 3. Add a footnote to paragraph 37 of SAS No. 58 to reiterate that the addition of an emphasis of a matter paragraph to the auditor's report is optional rather than required. 4. Add a paragraph to SAS No. 58 to indicate that an auditor may disclaim an opinion on financial statements due to uncertainties. This reporting option was previously presented in footnote 11 of SAS No. 58.
-
Proposed statement on auditing standards and statement on standards for attestation engagements : amendments to statements on auditing standards and statements on standards for attestation engagements to incorporate the internal control-integrated framework report ;Amendments to statements on auditing standards and statements on standards for attestation engagements to incorporate the internal control-integrated framework report; Exposure draft (American Institute of Certified Public Accountants), 1995, Feb. 23
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is issuing this proposed statement on auditing standards (SAS) and statement on standards for attestation engagements (SSAE) to provide auditors1 with improved guidance on performing an audit of an entity's financial statements and performing attestation services. The ASB is proposing changes to SAS No. 55, Consideration of the Internal Control Structure in a Financial Statement Audit (AICPA, Professional Standards, vol. 1, AU sec. 31 9), to replace the SAS No. 55 definition and description of the internal control structure with the definition and description in Internal Control — Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO report). The ASB believes the COSO report rapidly is becoming a widely accepted framework for sound internal control among U.S. organizations and its acceptance and use will continue to grow. Therefore, the ASB believes it is appropriate to revise SAS No. 55 to incorporate the COSO report to provide timely and useful guidance to auditors. In addition, the ASB is proposing changes to SSAE No. 2, Reporting on an Entity's Internal Control Structure Over Financial Reporting (AICPA, Professional Standards, vol. 1, AT sec. 400), to conform the description of elements of an entity's internal control structure to the components of an internal control structure contained in the proposed amendment to SAS No. 55 and in the COSO report. This proposed Statement consists solely of amendments to existing statements. The proposed amendments are outlined in the following paragraphs. SAS No. 55, Consideration of the Internal Control Structure in a Financial Statement Audit (AICPA, Professional Standards, vol. 1, AU sec. 319.01, .02, .06 through .22, and .66 through .69) This proposed amendment would: 1. Replace the definition of the internal control structure in SAS No. 55 with the COSO report definition. 2. Replace the three elements of the internal control structure in SAS No. 55 with the five components in the COSO report. 3. Replace appendix A and delete appendixes B, C, and D of SAS No. 55. 4. Make editorial conforming changes for terminology throughout SAS No. 55. SSAE No. 2, Reporting on an Entity's Internal Control Structure Over Financial Reporting (AICPA, Professional Standards, vol. 1, AT sec. 400.01, .12 through .16, .20, .26, and .27) This proposed amendment would: 1. Replace the three elements of the internal control structure with the five components of the internal control structure contained in the proposed amendment to SAS No. 55 and the COSO report. 2. Make editorial conforming changes throughout SSAE No. 2 to substitute components for elements. As a result of amending SAS No. 55 and SSAE No. 2 to incorporate the COSO report, as outlined above, this proposed Statement also includes amendments to: 1. SAS No. 70, Reports on the Processing of Transactions by Service Organizations (AICPA, Professional Standards, vol. 1, AU sec. 324.07, .26 and .42) 2. SAS No. 60, Communication of Internal Control Structure Related Matters Noted in an Audit (AICPA, Professional Standards, vol. 1, AU sec. 325.02 and .04) In addition, as a consequence of the foregoing changes to existing standards, the proposed Statement would require updating the guidance in the Audit Guide Consideration of the Internal Control Structure in a Financial Statement Audit and other audit and accounting guides that provide guidance on the internal control structure in audits of specific industries.
-
Proposed statement on auditing standards and statement on standards for attestation engagements : omnibus statement on auditing standards and statement on standards for attestation engagements, 1995;Omnibus statement on auditing standards and statement on standards for attestation engagements, 1995; Exposure draft (American Institute of Certified Public Accountants), 1995, Feb. 23
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is issuing this proposed statement on auditing standards (SAS) and statement on standards for attestation engagements (SSAE) to provide auditors1 with improved guidance on performing an audit of an entity's financial statements and performing attestation services. This proposed Statement would amend various sections of the SASs and the SSAEs. Among its more significant provisions are amendments that would: 1. Clarify the requirement to prepare a written audit program for every audit. 2. Preclude the auditor from using conditional language in a going-concern explanatory paragraph. 3. Preclude an AICPA accounting or audit guide or auditing interpretation from allowing additional distribution of statutory financial statements under an other comprehensive basis of accounting. 4. Provide working paper documentation requirements for attestation engagements. This proposed Statement would amend: 1. SAS No. 22, Planning and Supervision (AICPA, Professional Standards, vol. 1, AU sec. 311.05). 2. SAS No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (AICPA, Professional Standards, vol. 1, AU sec. 341.13). 3. SAS No. 1, Codification of Statements on Auditing Standards (AICPA, Professional Standards, vol. 1, AU sec. 544, "Lack of Conformity With Generally Accepted Accounting Principles," paragraphs .02 and .04), and SAS No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623.05). 4. SSAE No. 1, Attestation Standards (AICPA, Professional Standards, vol. 1, AT sec. 100, "Attestation Standards").
-
Proposed statements on quality control standards : System of quality control for a CPA firm's accounting and auditing practice, and Monitoring a CPA firm's accounting and auditing practice ;System of quality control for a CPA firm's accounting and auditing practice;Monitoring a CPA firm's accounting and auditing practice; Exposure draft (American Institute of Certified Public Accountants), 1995, Aug. 18
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is considering the issuance of two Statements on Quality Control Standards (SQCSs) to provide a CPA firm with improved guidance for establishing a quality control system for its accounting and auditing practice. The AICPA Division for CPA Firms SEC Practice Section Peer Review Committee and Private Companies Practice Section Peer Review Committee and the AICPA Peer Review Board (collectively the AICPA practice-monitoring committees) have observed that there is a diversity in practice and existing guidance does not address a number of issues CPA firms should consider in establishing a quality control system and suggested the ASB perform a comprehensive review of the existing quality control standard. The proposed standards have been developed based on the recommendations of the Joint Task Force on Quality Control Standards, which was formed to develop general guidance for a system of quality control. In addition to ASB representation, the task force is composed of representatives of the AICPA practice-monitoring committees, the AICPA Management Consulting Services Executive Committee, the AICPA Personal Financial Planning Executive Committee and the AICPA Tax Executive Committee. Although the latter three committees have representatives on the joint task force, the system of quality control described in the exposure drafts would be required only for a firm's accounting and auditing practice. The AICPA practice-monitoring committees have reviewed the exposure drafts and have advised the ASB that, although modifications will need to be made to their peer review programs, these changes are not expected to result in an expansion of peer review to services provided beyond a firm's accounting and auditing practice. The proposed general standard redefines a firm's accounting and auditing practice to include all audit, attest, and accounting and review services for which professional standards have been established by the ASB or the Accounting and Review Services Committee under rules 201 and 202 of the AICPA Code of Professional Conduct. The definition of a firm's accounting and auditing practice would include engagements performed under Statements on Standards for Attestation Standards issued by the ASB. These standards had not been issued when SQCS No. I, System of Quality Control for a CPA Firm, was promulgated. While not establishing any new elements of quality control, the proposed standards would replace the nine specific elements discussed in SQCS No. 1 with five broad elements. While many aspects of the previous nine elements have been retained, the following discussion highlights significant changes: 1. Independence, Integrity, and Objectivity — This element replaces the SQCS No. 1 element of Independence. It provides added emphasis on the importance of these matters to a firm's quality control system and provides a description of the concept of independence. 2. Personnel Management — This element combines the previous four elements of Hiring, Advancement, Assigning Personnel to Engagements, and Professional Development to emphasize their interrelationship, since the goal of each is to have personnel performing, supervising, and reviewing work who possess the characteristics of integrity, objectivity, competence, experience, intelligence, and motivation. This element adds a requirement for firms to establish policies and procedures to meet the continuing professional education requirements of the AICPA and regulatory agencies such as state boards of accountancy and the U.S. General Accounting Office. 3. Acceptance and Continuance of Clients and Engagements — SQCS No. 1 limited the Acceptance and Continuance of Clients element to a discussion of the need to consider the integrity of management in the acceptance and continuance of clients. This element has been broadened to include consideration of the acceptance of client engagements (as opposed to a client relationship) to ensure a firm has in place policies and procedures to provide reasonable assurance that the firm will undertake only those engagements that can be completed with professional competence. A requirement has also been included that policies and procedures provide for obtaining an understanding with the client regarding the nature, scope, and limitations of the services to be performed. 4. Engagement Performance — The practice-monitoring committees have found that practitioners often confused the existing Supervision element with the supervision requirements of the first standard of field work under generally accepted auditing standards. The retitled element includes the SQCS No. 1 elements of Supervision and Consultation and discusses a firm's need to establish policies and procedures to cover planning, performing, supervising, reviewing, documenting, and communicating the results of each engagement in accordance with applicable professional standards. 5. Monitoring — This element encompasses and expands the prior Inspection element. Inspection has been deemed to be a retroactive evaluation of compliance with professional standards and review of the continuing appropriateness of a firm's quality control 990 policies and procedures and the firm's compliance with them. Monitoring involves an ongoing consideration and evaluation relating to the design and application of each of the other elements of quality control. The proposed monitoring standard describes how inspection procedures contribute to the monitoring function. It also describes other procedures or activities that can contribute to the monitoring function. These proposed Statements would supersede SQCS No. 1 and its interpretations in their entirety. Issuance of the proposed Statements would also require the Guide Quality Control Policies and Procedures for CPA Firms: Establishing Quality Control Policies and Procedures (AICPA, Professional Standards, vol. 2, QC sec. 90) to be updated. As a result of the issuance of these Statements and updating the Guide, firms with well-established quality control systems should not have to make significant modifications to their policies and procedures.
-
Continuing Professional Education (CPE) Network, August 31, 1995; Exposure Draft (American Institute of Certified Public Accountants), 1995 Aug. 31
American Institute of Certified Public Accountants. CPE Planning Committee
-
Proposed audit and accounting guide : health care organizations ;Health care organizations; Exposure draft (American Institute of Certified Public Accountants), 1995, April 14
American Institute of Certified Public Accountants. Health Care Committee and American Institute of Certified Public Accountants. Health Care Audit Guide Task Force
This Guide applies to organizations whose principal operations consist of providing or agreeing to provide health care services and that derive all or almost all of their revenues from the sale of goods or services; it also applies to organizations whose primary activities are the planning, organization, and oversight of such organizations, such as parent or holding companies of health care providers. This Guide applies to health care organizations that are either (a) investor-owned businesses or (b) not-for-profit organizations that have no ownership interest and are essentially self-sustaining from fees charged for goods and services, as defined in Financial Accounting Standards Board (FASB) Statement of Financial Accounting Concepts No. 4, Objectives of Financial Reporting by Nonbusiness Organizations, paragraph 8, or (c) governmental. This Guide applies to the following types of health care organizations: 1. Clinics, medical group practices, individual practice associations, individual practitioners, emergency care facilities, laboratories, surgery centers, and other ambulatory care organizations; 2. Continuing care retirement communities (CCRCs); 3. Health maintenance organizations (HMOs) and similar prepaid health care plans; 4. Home health agencies; 5. Hospitals; 6. Nursing homes that provide skilled, intermediate, and less intensive levels of health care; 7. Drug and alcohol rehabilitation centers and other rehabilitation facilities; This Guide also applies to integrated delivery systems that include one or more of the above types of organizations. This Guide does not apply to voluntary health and welfare organizations, as defined in FASB Statement No. 117, Financial Statements of Not-for-Profit Organizations. These organizations should follow the AICPA Audit and Accounting Guide Not-for-Profit Organizations. Related fund-raising foundations that meet the definition of a not-for-profit organization given in FASB Statement No. 117 also should follow the AICPA Audit and Accounting Guide Not-for-Profit Organizations. When separate financial statements are issued for a state or local governmental health care organization that uses enterprise fund accounting and reporting, the accounting, reporting, and disclosure requirements set forth in this Guide and by pronouncements of the Governmental Accounting Standards Board (GASB) apply. (See chapter 1 for a discussion of the application of GAAP.)
-
Auditor's reporting on statutory financial statements of insurance enterprises : supersedes Statement of position 90-10, Reports on audited financial statements of property and liability insurance companies, and amends AICPA audit and accounting guide, Audits of property and liability insurance companies, and AICPA industry audit guide, Audits of stock life insurance companies; Statement of position 95-5;
American Institute of Certified Public Accountants. Insurance Companies Committee
-
Letters for state insurance regulators to comply with the NAIC Model Audit Rule ; Statement of position 95-4;
American Institute of Certified Public Accountants. Insurance Companies Committee
-
Accounting for certain distribution costs of investment companies : amendment to AICPA audit and accounting guide, Audit of investment companies; Statement of position 95-3;
American Institute of Certified Public Accountants. Investment Companies Committee
-
Financial reporting by nonpublic investment partnerships; Statement of position 95-2;
American Institute of Certified Public Accountants. Investment Companies Committee
-
Accounting for certain insurance activities of mutual life insurance enterprises; Statement of position 95-1;
American Institute of Certified Public Accountants. Mutual Life Insurance Task Force
-
Audits of not-for-profit organizations receiving federal awards : amendment to AICPA audit and accounting guides, Audits of providers of health care services, Audits of voluntary health and welfare organizations, Audits of colleges and universities, and Audits of certain nonprofit organizations; Statement of position 92-9;
American Institute of Certified Public Accountants. Not-for-Profit Organizations Committee
-
Proposed audit and accounting guide : Not-for-profit organizations ;Not-for-profit organizations; Exposure draft (American Institute of Certified Public Accountants), 1995, April 14
American Institute of Certified Public Accountants. Not-for-Profit Organizations Committee
This AICPA Audit and Accounting Guide has been prepared to assist nongovernmental not-for-profit organizations in preparing financial statements in conformity with generally accepted accounting principles (GAAP) and to assist independent auditors in auditing and reporting on those financial statements. This Guide applies to organizations that meet the definition of a not-for-profit organization included in appendix D of Financial Accounting Standards Board (FASB) Statement No. 117, Financial Statements of Not-for-Profit Organizations. Some organizations that have traditionally been considered to be not-for-profit organizations and that have been covered by American Institute of Certified Public Accountants (AICPA) Industry Audit Guides or Audit and Accounting Guides that are superseded by this Guide do not meet the definition of a not-for-profit organization in FASB Statement No. 117. Although FASB Statement No. 117 excludes those organizations from its scope, it nevertheless contains broad guidelines that would enable them to prepare meaningful financial statements. Accordingly, this Guide applies to certain organizations, referred to in this guide as not-for-profit organizations, though those organizations do not meet the definition of a not-for-profit organization in FASB Statement No. 117. This Guide incorporates certain provisions of FASB Statements No. 116, Accounting for Contributions Received and Contributions Made, and No. 117. Not all guidance that is included in those Statements, however, is incorporated, repeated, or summarized in this Guide. Accordingly, those Statements should be read in conjunction with this Guide. Like FASB Statements No. 116 and No. 117, this Guide is directed at not-for-profit organizations in general, and not at specific kinds of such organizations, such as voluntary health and welfare organizations or private colleges and universities. It is expected that various industry associations will publish guidance on applying both the FASB Statements and this Guide to specific kinds of organizations.2 This Guide supersedes the following AICPA Audit and Accounting Guides: 1. Industry Audit Guide Audits of Voluntary Health and Welfare Organizations; 2. Industry Audit Guide Audits of Colleges and Universities; 3. Audit and Accounting Guide Audits of Certain Nonprofit Organizations. lt also supersedes the following AICPA Statements of Position (SOPs): 1. SOP 74-8, Financial Accounting and Reporting by Colleges and Universities; 2. SOP 78-10, Accounting Principles and Reporting Practices for Certain Nonprofit Organizations.
-
Proposed statement on responsibilities in personal financial planning practice : developing a basis for recommendations;Developing a basis for recommendations; Exposure draft (American Institute of Certified Public Accountants), 1995, Aug. 15
American Institute of Certified Public Accountants. Personal Financial Planning Executive Committee
This proposed Statement on Responsibilities in Personal Financial Planning Practice (SRPFP) is intended to provide guidance to members of the AICPA who perform personal financial planning (PFP) services. This proposed SRPFP is advisory and does not constitute enforceable technical standards under rule 202 of the AICPA Code of Professional Conduct. This proposed SRPFP does not supersede Statements on Standards for Accounting and Review Services, Statements on Responsibilities in Tax Practice, the Personal Financial Statements Guide, or the Audit and Accounting Guide Guide for Prospective Financial Information. The issuance of this exposure draft was approved by the PFP Executive Committee. This proposed SRPFP provides guidance to CPAs in developing a basis for recommendations in a PFP engagement. It explains that developing a basis for recommendations involves three functions — collecting information, analyzing information, and formulating strategies and recommendations .— and provides guidance on performing each of these functions.
-
Omnibus proposal of Professional Ethics Division interpretations and rulings; Exposure draft (American Institute of Certified Public Accountants), 1995, Mar. 1
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
1. PROPOSED INTERPRETATION UNDER RULE 102: Professional Services Involving Client Advocacy; 2. PROPOSED REVISION OF INTERPRETATION 102-2 UNDER RULE 102: Conflicts of Interest; 3. PROPOSED RULING UNDER RULE 102 AND RULE 301: Member Providing Services for Company Executives; 4. PROPOSED REVISION OF INTERPRETATION 101-10 UNDER RULE 101: The Effect on Independence of Relationships With Entities Included in the Governmental Financial Statements
-
Omnibus proposal of Professional Ethics Division interpretations and rulings; Exposure draft (American Institute of Certified Public Accountants), 1995, July 19
American Institute of Certified Public Accountants. Professional Ethics Executive Committee and American Institute of Certified Public Accountants. Professional Ethics Division
1. PROPOSED REVISION OF DEFINITION UNDER ET SECTION 92: Financial Statements; 2. PROPOSED RULING UNDER RULE 203: Applicability of Rule 203 to Members Performing Litigation Support Services; 3. PROPOSED RULING UNDER RULE 102: Client Advocacy and Expert Witness Services ? PROPOSED RULING UNDER RULE 101: Member's Indemnification of a Client
-
Disclosure of certain significant risks and uncertainties; Statement of position 94-6;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
-
Comment letters on Exposure Draft on Compliance Auditing Considerations in Audits of Governmental Entities and Other Recipients of Governmental Financial Assistance Here
American Institute of Certified Public Accountants. Auditing Standards Board
-
Comment letters on Proposed Statement on Standards for Attestation Engagements, Amendments to Statement on Auditing Standards No. 72, Letters for Underwriters and Certain Other Requesting Parties
American Institute of Certified Public Accountants. Auditing Standards Board
-
Comment letters proposed Statement on Auditing Standards, Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement
American Institute of Certified Public Accountants. Auditing Standards Board
-
Proposed statement on auditing standards and statement on standards for attestation engagements : amendments to statement on auditing standards no. 72, Letters for underwriters and certain other requesting parties, and to statements on standards for attestation engagements;Amendments to statement on auditing standards no. 72, Letters for underwriters and certain other requesting parties, and to statements on standards for attestation engagements; Exposure draft (American Institute of Certified Public Accountants), 1994, Oct. 28
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is issuing this proposed statement on auditing standards (SAS) and statement on standards for attestation engagements (SSAE) to provide auditors* with reporting guidance and an example letter when certain parties request a letter but do not provide the representation letter described in paragraphs 6 and 7 of SAS No. 72, Letters for Underwriters and Certain Other Requesting Parties (AICPA, Professional Standards, vol. 1, AU sec. 634). These proposed Statements amend various sections of the SASs and the SSAEs. The most significant provision of the proposed Statements consists of amendments to SAS No. 72 that provide reporting guidance when one of the parties identified in paragraph 3, 4, or 5 of SAS No. 72, other than an underwriter or other party with a due diligence defense under section 11 of the Securities Act of 1933, requests a comfort letter but does not provide the representation letter described in paragraphs 6 and 7 of SAS No. 72. These proposed Statements would amend SAS No. 72, paragraphs 9 and 63. In addition, the proposed amendment would require revision to the following: 1. SSAE No. 1, Codification of Statements on Standards for Attestation Engagements (AICPA, Professional Standards, vol. 1, AT secs. 100.59, 200.49, 300.01) 2. SAS No. 35, Special Reports — Applying Agreed-Upon Procedures to Specified Elements, Accounts or Items of a Financial Statement (AICPA, Professional Standards, vol. 1, AU sec. 622)
-
Proposed statement on auditing standards : Compliance auditing considerations in audits of governmental entities and other recipients of governmental financial assistance;Compliance auditing considerations in audits of governmental entities and other recipients of governmental financial assistance; Exposure draft (American Institute of Certified Public Accountants), 1994, May 12
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board is issuing this proposed statement on auditing standards to revise the guidance contained in Statement on Auditing Standards (SAS) No. 68, Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance (AICPA, Professional Standards, vol. 1, AU sec. 801). This proposed Statement would provide generic guidance to practitioners engaged to perform compliance audits of governmental entities and other recipients of governmental financial assistance. In addition, this proposed Statement would not require frequent revision and updating because it does not identify compliance requirements or specify the form of reporting. This proposed Statement: a. Recognizes three levels of audits (generally accepted auditing standards, Government Auditing Standards, and certain other federal requirements) of recipients of governmental financial assistance. b. Reduces the level of detail included in the auditing standards. (Specific performance and reporting guidance would be included, more appropriately, in the applicable audit and accounting guides and statements of position.) This proposed Statement would supersede SAS No. 68, Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance. Furthermore, as a consequence of the foregoing change, the proposed Statement would require conforming changes to and updating of the guidance in related statements of position and audit and accounting guides.
-
Proposed statement on auditing standards : engagements to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement ;Engagements to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement; Exposure draft (American Institute of Certified Public Accountants), 1994, Oct. 28
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is considering the issuance of a statement on auditing standards to provide guidance to auditors on performing and reporting on applying agreed-upon procedures to specified elements, accounts, or items of a financial statement. The ASB has observed that there is diversity in practice in performing and reporting on these engagements, and that the existing guidance does not address a number of issues auditors should consider. In addition, the ASB has concluded that negative assurance should be eliminated from reports on engagements covered by the Statement. The proposed Statement provides guidance to assist the auditor in understanding: a. The nature of an engagement to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement. b. Conditions for performance of an engagement to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement. c. The nature, timing, and extent of procedures, including the involvement of internal auditors and others. d. The responsibilities of the auditor and the specified users. e. How to report procedures performed and related findings. The proposed Statement would supersede Statement on Auditing Standards (SAS) No. 35, Special Reports—Applying Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement (AICPA, Professional Standards, vol. 1, AU sec. 622). Furthermore, as a consequence of superseding SAS No. 35, the proposed Statement would require conforming changes to certain SASs and related Interpretations and to the Attest Interpretation "Responding to Requests for Reports on Matters Relating to Solvency" (AICPA, Professional Standards, vol. 1, AT sec. 9100.33-44). In addition, it would require updating the guidance in the following: a. Statements on Auditing Standards: (1) SAS No. 26, Association With Financial Statements (AICPA, Professional Standards, vol. 1, AU sec. 504); (2) SAS No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623); (3) SAS No. 70, Reports on the Processing of Transactions by Service Organizations (AICPA, Professional Standards, vol. 1, AU sec. 324); (4) SAS No. 72, Letters for Underwriters and Certain Other Requesting Parties (AICPA, Professional Standards, vol. 1, AU sec. 634). b. Audit and Accounting Guides: (1) Audits of Banks; (2) Audits of Credit Unions; (3) Audits of Employee Benefit Plans; (4) Audits of Property and Liability Insurance Companies; (5) Audits of Savings Institutions; (6) Audits of Service-Center-Produced Records; (7) Personal Financial Statements Guide. c. Statement of Position (SOP) 90-6, Directors' Examinations of Banks (appendix H to Audit and Accounting Guide Audits of Banks). Commentators to this proposed Statement should be aware that auditors performing an engagement on the application of agreed-upon procedures under the auditing standards must be independent pursuant to rule 101 of the Code of Professional Conduct (AICPA, Professional Standards, vol. 2, ET sec. 101). Commentators to this proposed Statement should also be aware that, concurrent with exposure of this proposed Statement, the ASB has issued an exposure draft of a statement on standards for attestation engagements (SSAE) for agreed-upon procedures engagements falling under those standards. The proposed SSAE addresses a number of issues that also are being addressed in this proposed Statement. The significant difference is that, since the proposed SAS deals with specified elements, accounts, or items of a financial statement, the presence of a written assertion as a condition of engagement performance is not required. The ASB believes a written assertion is not required in an engagement to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement, because assertions are effectively embodied in such specified elements, accounts, or items of a financial statement when the basis of accounting is clearly evident.
-
Proposed statement on standards for attestation engagements : agreed-upon procedures engagements;Agreed-upon procedures engagements; Exposure draft (American Institute of Certified Public Accountants), 1994, Oct. 28
American Institute of Certified Public Accountants. Auditing Standards Board
The Auditing Standards Board (ASB) is considering the issuance of a statement on standards for attestation engagements (SSAE) to provide guidance to practitioners on performing and reporting on agreed-upon procedures engagements. The ASB has observed that there is diversity in practice in performing and reporting on these engagements, and that the existing guidance does not address a number of issues practitioners should consider. In addition, the ASB has concluded that negative assurance should be eliminated from agreed-upon procedures engagements covered by the Statement. The proposed Statement provides guidance to assist the practitioner in understanding: a. Agreed-upon procedures engagements and the applicable attestation standards. b. Conditions for performance of an agreed-upon procedures engagement. c. The nature, timing, and extent of procedures, including the involvement of internal auditors and others. d. The responsibilities of the practitioner and the specified users. e. How to report procedures performed and related findings. The proposed Statement would supersede: a. Paragraphs 43, 44, and 59 through 62 of "Attestation Standards" from SSAE No. 1, Codification of Statements on Standards for Attestation Engagements (AICPA, Professional Standards, vol. 1, AT sec. 100). b. Paragraphs 53, 55, and 56 of "Financial Forecasts and Projections" from SSAE No. 1 (AICPA, Professional Standards, vol. 1, AT sec. 200). c. Paragraph 9 of SSAE No. 2, Reporting on an Entity's Internal Control Structure Over Financial Reporting (AICPA, Professional Standards, vol. 1, AT sec. 400). Also, this proposed Statement would amend: a. Paragraph 70 of SSAE No. 1, AT sec. 100; b. Paragraphs 49 through 52, 54, and 57 of SSAE No. 1, AT sec. 200; c. Paragraphs 15 through 18, 23, 24, and 26 of SSAE No. 3, Compliance Attestation (AICPA, Professional Standards, vol. 1, AT sec. 500). The foregoing proposed amendments are included as appendixes A, B, and C to this proposed Statement. Furthermore, as a consequence of the foregoing changes to existing standards, the proposed Statement would require conforming changes to certain Statements on Auditing Standards (SASs) and related Interpretations and to certain SSAEs and the Attest Interpretation "Responding to Requests for Reports on Matters Relating to Solvency" (AICPA, Professional Standards, vol. 1, AT sec. 9100.33-.44). In addition, it would require updating the guidance in the following: a. Audit and Accounting Guides: (1) Audits of Banks; (2) Audits of Credit Unions; (3) Audits of Savings Institutions; (4) Guide for Prospective Financial Information; b. Statement of Position (SOP) 90-1, Accountants' Services on Prospective Financial Statements for Internal Use Only and Partial Presentations. Commentators to this proposed Statement should be aware that practitioners performing attest engagements must be independent pursuant to rule 101 of the Code of Professional Conduct (AICPA, Professional Standards, vol. 2, ET sec. 101). Interpretation 11 to rule 101 provides guidance about its application in certain attest engagements (see AICPA, Professional Standards, vol. 2, ET sec. 101.13). Relationship to Statement on Auditing Standards (SAS) No. 35, Special Reports - Applying Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement. Commentators to this proposed Statement should also be aware that, concurrent with exposure of this proposed Statement, the ASB has issued an exposure draft of a statement on auditing standards that would supersede SAS No. 35. The proposed SAS addresses a number of issues that also are being addressed in this proposed Statement. The significant difference is that, since the proposed SAS deals with specified elements, accounts, or items of a financial statement, presence of a written assertion as a condition of engagement performance is not required.
-
Comment Letters Received on August 1994 Exposure Draft "Banks and Savings Institutions"
American Institute of Certified Public Accountants. Banking and Savings Institutions Committee
-
Proposed audit and accounting guide : banks and savings institutions;Banks and savings institutions; Exposure draft (American Institute of Certified Public Accountants), 1994, Aug. 31
American Institute of Certified Public Accountants. Banking and Savings Institutions Committee
This guide supersedes the AICPA Audit and Accounting Guide Audits of Savings Institutions and the AICPA Industry Audit Guide Audits of Banks. This guide applies to audits of the financial statements of banks and savings institutions insured by the Bank Insurance Fund (BIF) or the Savings Association Insurance Fund (SAIF) of the Federal Deposit Insurance Corporation (FDIC), regardless of charter. The guide also should be applied in audits of the financial statements of other banks and savings institutions, although it does not address all matters that may be unique to those institutions due to their charter or the nature of their regulation or supervision. Appendix D provides guidance on certain engagements performed by independent accountants in accordance with Statements on Standards for Attestation Engagements (SSAE) that might also be requested by banks and savings institutions. The guide is intended to highlight significant matters and establish general guidance. It is not intended to provide comprehensive discussion of all possible matters of significance in an audit of financial statements or all audit situations that an independent accountant might encounter in an audit of the financial statements of a bank or savings institution. Consulting the accounting and financial reporting and auditing sections of the guide cannot take the place of a careful reading of specified authoritative literature. Other professional literature and authoritative guidance that may be issued by the Accounting Standards Executive Committee (AcSEC), the Financial Accounting Standards Board (FASB), including its Emerging Issues Task Force (EITF), or the Auditing Standards Board (ASB) may affect audits of the financial statements of banks and savings institutions. Further, the nature, timing, and extent of audit procedures applied in a financial statement audit is ultimately determined by the independent accountant in the circumstances. The procedures discussed in the auditing section of the guide are not intended to be comprehensive and, performed by themselves, would not necessarily constitute an audit in accordance with generally accepted auditing standards (GAAS). Nor would omission of certain procedures set forth in the guide necessarily result in a violation of GAAS. The internal control structure over financial reporting and possible tests of controls are discussed in the context of a financial statement audit. While they may correspond to internal controls that are the subject of procedures performed in an engagement performed in accordance with SSAEs, they are not presented in that context and are not intended to address the considerations of such an engagement. The accounting and financial reporting provisions of this guide describe current authoritative literature (or practice where no such literature exists) rather than establish new principles. Accordingly, effective dates should be applied as provided for in the related literature. The disclosures about regulatory matters shall be effective for financial statements issued for years beginning after December 15, 1994. The accounting and financial reporting provisions of this guide need not be applied to immaterial items. The auditing provisions of this guide shall be applied prospectively to audits of depository institutions' financial statements for fiscal years beginning after December 15, 1994.
-
Reporting of investment contracts held by health and welfare benefit plans and defined-contribution pension plans, September 23, 1994 : amendment to AICPA Audit and accounting guide, Audits of employee benefit plans, and SOP 92-6, Accounting and reporting by health and welfare benefit plans; Statement of position 94-4;
American Institute of Certified Public Accountants. Employee Benefit Plans Committee
-
Industry accounting guide : insurance agents and brokers; Insurance agents and brokers; Exposure draft (American Institute of Certified Public Accountants), 1994, Feb. 17
American Institute of Certified Public Accountants. Insurance Agents and Brokers Task Force
-
Inquiries of state insurance regulators : amendment to AICPA Audit and accounting guide Audits of property and liability insurance companies and AICPA industry audit guide Audits of stock life insurance companies; Statement of position 94-1;
American Institute of Certified Public Accountants. Insurance Companies Committee
-
Proposed statement of position : auditor's reports on statutory financial statements of insurance enterprises : proposed amendment to AICPA audit and accounting guide, Audits of property and liability insurance companies, and AICPA industry audit guide, Audits of stock life insurance companies ;Auditor's reports on statutory financial statements of insurance enterprises : proposed amendment to AICPA audit and accounting guide, Audits of property and liability insurance companies, and AICPA industry audit guide, Audits of stock life insurance companies; Exposure draft (American Institute of Certified Public Accountants), 1994, Aug. 12
American Institute of Certified Public Accountants. Insurance Companies Committee
This proposed statement of position (SOP) addresses auditors' considerations in reporting on statutory financial statements of insurance enterprises. The proposed SOP: 1. Rescinds SOP 90-10, Reports on Audited Financial Statements of Property and Liability Insurance Companies. 2. Discusses matters auditors should include in their reports when issuing limited or general distribution reports on statutory financial statements. 3. Discusses matters auditors should evaluate when considering issuing limited distribution reports on statutory financial statements. 4. Clarifies auditors' reporting on the statutory financial statements of mutual life insurance enterprises. This SOP would be applied to audits of financial statements for years ended on or after December 31, 1995.
-
Proposed statement of position : Accounting for certain distribution costs for investment companies (proposed amendment to AICPA audit and accounting guide, Audits of Investment Companies);Accounting for certain distribution costs for investment companies (proposed amendment to AICPA audit and accounting guide, Audits of Investment Companies); Exposure draft (American Institute of Certified Public Accountants), 1994, Apr. 22
American Institute of Certified Public Accountants. Investment Companies Committee
This proposed statement of position (SOP) would amend the Audit and Accounting Guide Audits of Investment Companies (the Guide) to provide guidance on financial reporting by investment companies for certain distribution costs. It would require that: 1. A liability for excess costs should be recognized by a fund with an enhanced 12b-1 plan when the distributor incurs distribution costs, with a corresponding charge to expense. The amount of the liability should be equal to the cumulative costs incurred by the distributor less the sum of (a) the cumulative 12b-1 fees paid to date, (b) the cumulative contingent deferred sales load (CDSL) payments to date, and (c) if reasonably estimable, future cumulative CDSL payments by current shareholders. The liability for such excess costs should be calculated based on the present value of estimated future 12b-1 plan fees payable by the fund if (a) the amount and timing of cash flows are reliably determinable, and (b) the distribution costs are not subject to a reasonable interest charge. A liability should be recorded by a fund with a board contingent plan when the fund's board commits to pay excess costs. 2. Investment companies should disclose in their financial statements (1) the principal terms of both traditional and enhanced 12b-1 plans, including plan provisions permitting or requiring payments of excess distribution costs after plan termination, and (2) for board contingent and enhanced plans, the aggregate amount of excess distribution costs subject to recovery through future payments by the fund, pursuant to the plan and current shareholders through CDSL payments. For enhanced 12b-1 plans, the fund should disclose the methodology used to estimate future CDSL payments by current shareholders.
-
Application of the requirements of accounting research bulletins, opinions of the Accounting Principles Board, and statements and interpretations of the Financial Accounting Standards Board to not-for-profit organizations; Statement of position 94-2;
American Institute of Certified Public Accountants. Not-for-Profit Organizations Committee
-
Reporting of related entities by not-for-profit organizations : amendment to AICPA industry audit guides, Audits of voluntary health and welfare organizations and Audits of colleges and universities, AICPA audit and accounting guide, Audits of certain nonprofit organizations, and SOP 78-10, Accounting principles and reporting practices for certain nonprofit organizations; Statement of position 94-3;
American Institute of Certified Public Accountants. Not-for-Profit Organizations Committee
-
Omnibus proposal of Professional Ethics Division interpretations and rulings; Exposure draft (American Institute of Certified Public Accountants), 1994, July 26
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
1. PROPOSED INTERPRETATION UNDER RULE 102: Client Service and Client Advocacy; 2. PROPOSED INTERPRETATION UNDER RULE 102: Applicability of Rule 102 to Members Performing Educational Services; 3. PROPOSED RULING UNDER RULE 302: Contingent Fees in Connection With an IPO Acquisition; 4. PROPOSED INTERPRETATION UNDER RULE 501: Violation of the Uniform CPA Examination Nondisclosure Statement; 5. PROPOSED REVISION OF INTERPRETATION 101-11 UNDER RULE 101: Independence and Attest Engagements
-
Proposed statement of position : Reporting by Real Estate Companies of supplemental current-value information;Reporting by Real Estate Companies of supplemental current-value information; Exposure draft (American Institute of Certified Public Accountants), 1994, Oct. 10
American Institute of Certified Public Accountants. Real Estate Committee
This proposed statement of position (SOP) provides guidance for the optional reporting of supplemental current-value information by real estate entities, substantially all of whose assets are real estate and substantially all of whose operations consist of real estate activities. Supplemental current-value information may be reported in a separate supplemental balance sheet or may be presented on the face of the entity's general-purpose, historical-cost balance sheet if the information is clearly identified as supplemental information prepared on the basis of current value to the entity. Current value to the entity, as used in this proposed SOP, refers to the estimated value of a reporting entity's assets and liabilities based on the entity's intent and ability to realize asset values and settle liabilities. Current value to the entity is based, directly or indirectly, on the discounted amount of net cash flows expected to be realized by the reporting entity. In this proposed SOP, current value to the entity refers to the value of specific balance-sheet elements — not to the value of the entity as a whole. The supplemental current-value information should be accompanied by a disclosure of changes in revaluation equity. This proposed SOP should be applied to supplemental current-value information reported for fiscal years, and interim periods in such fiscal years, beginning after December 15, 1995. Restatement of comparative annual financial statements for earlier years is encouraged but not required.
-
Proposed statement on responsibilities in personal financial planning practice : Monitoring and updating engagements -- functions and responsibilities;Monitoring and updating engagements -- functions and responsibilities; Exposure draft (American Institute of Certified Public Accountants), 1994, Apr. 8
American Institute of Certified Public Accountants. Statements on Responsibilities in PFP Practice Subcommittee
This proposed Statement on Responsibilities in Personal Financial Planning Practice (SRPFP) is intended to provide guidance to members of the AICPA who perform personal financial planning services. This proposed SRPFP is advisory and does not constitute enforceable technical standards under rule 202 of the AICPA Code of Professional Conduct. This proposed SRPFP does not supersede Statements on Standards for Accounting and Review Services, Statements on Responsibilities in Tax Practice, the Personal Financial Statements Guide, or the Guide for Prospective Financial Statements. The issuance of this exposure draft was approved by the PFP Executive Committee. This proposed SRPFP provides guidance to CPAs who have been engaged to monitor a client's progress toward financial planning goals or to update recommendations for attaining those goals and explains that CPAs are not responsible for undertaking these services unless specifically engaged by a client. This proposed SRPFP identifies various levels at which CPAs may become involved in monitoring financial plans, suggests certain monitoring activities that should be undertaken, and indicates that CPAs should monitor financial plans using the same criteria used to develop the plans. Furthermore, it recommends that CPAs communicate the results of monitoring procedures to clients and provides sample communications. This proposed SRPFP provides guidance on updating engagements, which are normally undertaken as a result of information obtained during a monitoring engagement. This proposed SRPFP explains that updating a client's financial plan is essentially similar to developing personal financial planning recommendations. Accordingly, CPAs can look to SRPFP No. 1, Basic Personal Financial Planning Engagement Functions and Responsibilities, for guidance as they plan and execute an updating engagement. In addition, this proposed SRPFP clarifies that CPAs updating a financial plan should consider the fact that updating one financial planning recommendation may affect other aspects of the plan, recommends that CPAs communicate the fact when limitations have been placed on the portions of the plan being updated, and provides a sample communication.