Exposure Drafts, Comment Letters, and Statements of Position

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  Questions concerning accountants' services on prospective financial statements; Statement of position 89-3;

  American Institute of Certified Public Accountants. Auditing Standards Division

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  Proposed statement of position : Inquiries of representatives of financial institution regulatory agencies ;Inquiries of representatives of financial institution regulatory agencies; Exposure draft (American Institute of Certified Public Accountants), 1989, Sept. 29

  American Institute of Certified Public Accountants. Banking Committee and American Institute of Certified Public Accountants. Savings and Loan Associations Committee

  This proposed statement of position (SOP) amends chapter 2 in the AICPA Industry Audit Guide Audits of Banks and chapter 2 in the AICPA Audit and Accounting Guide Audits of Savings and Loan Associations. The proposed SOP emphasizes that the CPA should not overlook regulatory examiners as a source of competent evidential matter in conducting an audit of a financial institution's financial statements and, therefore, should review reports of examination and other communications from examiners and, when appropriate, make inquiries of the examiners. The CPA should: 1. Request that management provide access to all reports of examinations and related correspondence. 2. Review reports of significant examinations and related correspondence received by the financial institution during the period under audit through the date of the CPA's opinion. 3. Communicate with the examiners, with the prior approval of the financial institution, when their examination of the financial institution is in process or a report on a recent examination has not been received by the financial institution. A refusal by management to allow the CPA to review communications or communicate would be a scope limitation, whereas the refusal of the examiner to communicate with the auditor may be a scope limitation, depending on the auditor's assessment of other relevant facts and circumstances.

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  Proposed audit and accounting guide for consideration of the internal control structure in a financial statement audit ;Consideration of the internal control structure in a financial statement audit; Exposure draft (American Institute of Certified Public Accountants), 1989, Aug. 21

  American Institute of Certified Public Accountants. Control Risk Audit Guide Task Force

  In February 1988, the Auditing Standards Board issued SAS No. 55, Consideration of the Internal Control Structure in a Financial Statement Audit. SAS No. 55 requires that, in every audit, the auditor: 1. Obtain an understanding of each of the elements (control environment, accounting system, and control procedures) of the internal control structure sufficient to plan the audit, and 2. Assess control risk for assertions related to account balances and transaction classes. This proposed guide was prepared to illustrate how SAS No. 55 might be applied by auditors in certain situations. Specifically, this proposed guide does this by illustrating two different audit strategies among many that an auditor might choose when auditing an assertion. As depicted in the flowchart in figure 1-2, the auditor may plan: 1. A primarily substantive approach (which ordinarily results in a control risk assessment at or slightly below maximum), or 2. A lower control risk assessment. In each case, the preliminary audit strategy may influence the extent of understanding of each element of the internal control structure that the auditor needs to obtain. Therefore, the nature, timing, and extent of procedures performed to obtain this understanding and assess control risk may differ. The audit strategy may also affect the nature, timing, and extent of substantive procedures to be performed. This proposed guide provides guidance on these matters as well as on the related documentation of evidence obtained by the auditor. It supports the guidance with illustrations of the audits of three hypothetical companies --Ownco, Inc., Young Fashions, Inc., and Vinco, Inc. Ownco, Inc. is a small, owner-managed business. Young Fashions, Inc. represents a growing, nonpublic company with multiple locations. Vinco, Inc. is a large public company. Since most accounting systems involve computer processing (through a microcomputer, minicomputer, or mainframe), each of these three hypothetical companies uses some form of computer processing. Through these illustrations, presented in italics throughout, the proposed guide describes how an auditor's procedures to obtain the understanding and assess control risk may differ from audit to audit.

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  Proposed statement of position : accountants' services on prospective financial statements for internal use only and partial presentations ;Accountants' services on prospective financial statements for internal use only and partial presentations; Exposure draft (American Institute of Certified Public Accountants), 1989, Apr. 25

  American Institute of Certified Public Accountants. Financial Forecasts and Projections Task Force

  The Forecasts and Projections Audit Issues Task Force developed this proposed statement of position (SOP) to clarify and expand on procedural and reporting guidance contained in the AICPA Guide for Prospective Financial Statements ("the Guide"). Specifically, the SOP provides guidance to practitioners engaged to provide services on: 1. Prospective financial statements for internal use only. 2. Partial presentations of prospective financial information. Sections 900 and 1000 of the Guide provide limited guidance on accountants' services on prospective financial statements for internal use only and partial presentations, respectively. However, much of that guidance was based on rule 201(e) of the AICPA Code of Professional Ethics and related interpretation 201-2. The interpretation, which applied to both partial presentations and prospective financial statements intended for internal use only, discussed the disclosure of assumptions, disclosure of the character of the work done by the accountant, and the degree of responsibility taken by the accountant. Rule 201(e) and its related interpretation, however, were deleted with the adoption of the AICPA Code of Professional Conduct by the membership in January 1988. Therefore, this proposed SOP provides needed guidance in these areas. In addition, practitioners have requested additional guidance on services on partial presentations of prospective financial information. The SOP is divided into two sections: 1. Guidance on the Accountant's Services and Reports on Prospective Financial Statements for Internal Use Only, which would replace Section 900 of the Guide, provides practitioners with suggested procedural and reporting guidance to use in providing services on financial forecasts and projections for internal use only. Specifically, this section amends Section 900 of the Guide for deletion of rule 201(e) and its related interpretation and expands on the guidance in Section 900 when an accountant decides to issue a report on his or her services with respect to prospective financial statements for internal use only. 2. Partial Presentations of Prospective Financial Information, which would replace Section 1000 of the Guide, provides procedural and reporting guidance to an accountant who is engaged to issue or issues a written communication that expresses a conclusion about the reliability of a written partial presentation that is the responsibility of another party. In such circumstances, the accountant should examine or apply agreed-upon procedures to the presentation. Guidance is also included for an accountant engaged to compile a partial presentation. In addition, the SOP describes how much of the guidance in the Guide can be applied to partial presentations.

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  Auditor's reports in audits of state and local governmental units : August 11, 1989, amendment to AICPA audit and accounting guide Audits of state and local governmental units; Statement of position 89-6;

  American Institute of Certified Public Accountants. Government Accounting and Auditing Committee

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  Accounting and reporting guide for insurance agents and brokers; Exposure draft (American Institute of Certified Public Accountants), 1989, May 3

  American Institute of Certified Public Accountants. Insurance Agents and Brokers Tasks Force

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  Report on the internal control structure in audits of investment companies; Statement of position 89-7;

  American Institute of Certified Public Accountants. Investment Companies Committee

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  Reports on audited financial statements of investment companies : amendment to AICPA audit and accounting guide Audits of investment companies; Statement of position 89-2;

  American Institute of Certified Public Accountants. Investment Companies Committee

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  Omnibus proposal of Professional Ethics Division interpretations and rulings; Exposure draft (American Institute of Certified Public Accountants), 1989, Jan. 12

  American Institute of Certified Public Accountants. Professional Ethics Executive Committee

  The following revisions and interpretations are being proposed: 1. REVISION OF THE APPLICABILITY SECTION OF THE AICPA CODE OF PROFESSIONAL CONDUCT; 2. REVISION OF INTERPRETATION 101-2: Former Practitioners and Firm Independence; 3. INTERPRETATION UNDER RULE 101: Independence and Attest Engagements; 4. INTERPRETATION UNDER RULE 102: Conflicts of Interest; 5. INTERPRETATION UNDER RULE 301: Application of Exemptions 2 and 4 of Rule 301 to AICPA Members; 6. INTERPRETATION 501-5: Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies in Performing Attest or Similar Services; 7. ETHICS RULING UNDER RULE 101: Use of Nonindependent CPA Firm on an Engagement; 8. REVISION OF ETHICS RULING NO. 31 UNDER RULE 101: Financial Interest in a Cooperative, Condominium Association, Planned Unit Development, Homeowners Association, Timeshare Development, or Other Common Interest Realty Association; 9. REVISION OF ETHICS RULING NO. 7 UNDER RULE 301: Revealing Names of Clients; 10. REVISION OF ETHICS RULING NO. 176 UNDER RULE 502: Newsletters and Publications Prepared by Others; 11. REVISION OF INTERPRETATION 502-2 UNDER RULE 502: False, Misleading, or Deceptive Acts in Advertising or Solicitation; 12. DELETION OF INTERPRETATION 502-1 UNDER RULE 502: Informational Advertising; 13. DELETION OF ETHICS RULING NO. 127 UNDER RULE 504: State Controller; 14. DELETION OF ETHICS RULING NO. 132 UNDER RULE 504: Tax Practice: Conflict of Interest; 15. DELETION OF ETHICS RULING NO. 86 UNDER RULE 502: Paid for by Others, Name in Client Ad; 16. DELETION OF ETHICS RULING NO. 4 UNDER RULE 301: Prior Client Relationship; 17. DELETION OF INTERPRETATION 301-1 UNDER RULE 301: Confidential Information and Technical Standards.

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  Proposed Professional Ethics Division definitions and rulings;Proposed Interpretation providing definitions of words and phrases as used in the AICPA Code of Professional Conduct;Proposed ethics ruling under rule 101: Member on advisory board of client;Proposed deletion of ethics rulings no. 147 and no. 148 under rule 505: Firm designation; Exposure draft (American Institute of Certified Public Accountants), 1989, May 1

  American Institute of Certified Public Accountants. Professional Ethics Executive Committee

  The Professional Ethics Executive Committee proposes an interpretation of the Code of Professional Conduct that provides definitions of certain terms used in the Code. The defined terms determine the applicability of Code rules to the various segments of Institute membership. For example, a number of the rules apply to members performing "professional services," other rules apply to members in "public practice," and several rules contain the term "client." The proposed interpretation defines those terms and thereby provides guidance on how the rules of conduct apply to members. The Professional Ethics Executive Committee recognizes the diverse responsibiities and structures that advisory boards assume throughout various industries. The committee believes that service on an advisory board would impair the member's independence unless the three criteria delineated in the proposed ruling are met. In light of new rule 505, the Professional Ethics Executive Committee believes that rulings 147 and 148 are no longer appropriate. The committee does not believe that it is "misleading" for a sole proprietor to practice under a firm name that includes "and Company" or "and Associates." The committee recommends the deletion of both rulings from the Code.

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  Proposed Professional Ethics Division rulings and interpretations ;Proposed ethics ruling under Rule 101;Meaning of the Period of a Professional Engagement;Audits, Reviews, or Compilations and a Lack of Independence;Member Joining Client Credit Union;Proposed Interpretation under Rule 301: Confidential Information and the Purchase, Sale, or Merger of a Practice;Confidential Information and the Purchase, Sale, or Merger of a Practice;Proposed interpretation under Rule 101: Confidential Information and the Purchase, Sale, or Merger of a Practice;Confidential Information and the Purchase, Sale, or Merger of a Practice; Exposure draft (American Institute of Certified Public Accountants), 1989, Aug. 18

  American Institute of Certified Public Accountants. Professional Ethics Executive Committee

  Rule 101 and interpretation 101-1 specify transactions, interests, or relationships that impair independence, if they exist during various time periods. One of the time periods referred to in interpretation 101-1 is: "The period of a professional engagement." The committee proposes to define the period of a professional engagement as commencing when the member is engaged to perform the professional service and continuing until the relationship is terminated by the member or the client. The Professional Ethics Executive Committee receives many inquiries from members who are uncertain as to whether they may issue compilations or review reports when the members' independence is impaired with respect to the clients. The committee believes that explicit guidance is needed in the Code and recommends the adoption of the proposed ruling. The Professional Ethics Executive Committee is receiving an increasing number of inquiries from members who have the opportunity to join credit unions for which the members provide professional services requiring independence. Interpretation 101-1-A4 provides that independence is considered to be impaired if a member has any loan to or from the client. However, an exception is made if the member has a loan from a client which is a financial institution. Such a loan must meet criteria included in the interpretation and must be made under normal lending procedures, terms, and requirements. After considering the matter, the committee concluded that if a credit union meets the definition of a financial institution as provided in interpretation 101-5, and the loan is consistent with interpretation 101-1-A4, membership in the credit union would not impair the member's and the member's firm's independence. If the credit union does not meet the definition of a financial institution, or the loans or deposits are not in accordance with the interpretations and rulings of the Code, membership in the client credit union would cause the independence of the member and the member's firm to be impaired. Rule 301 provides, in part, that "a member in public practice shall not disclose any confidential client information without the specific consent of the client." In connection with a prospective sale or merger of a member's practice, it is often necessary to disclose confidential client information without obtaining the client's specific consent to do so. However, the committee believes that this should be permitted under rule 301, provided that the member take appropriate action to protect confidential client information. The Professional Ethics Executive Committee believes that an interpretation addressing this issue should be adopted. The proposed interpretation provides guidance regarding a member's independence with respect to both the subject of the assertion and the asserter for those attest engagements that are not covered by Statements on Auditing Standards, Statements on Standards for Accounting and Review Services, and Statements on Standards for Accountants' Services on Prospective Financial Information. The Professional Ethics Executive Committee believes that different independence standards should apply to the attest engagements to which the proposed interpretation applies and to attest engagements not covered by the proposal because of important differences that may exist between those two types of attest engagements. For example, the attest engagements covered by the proposal usually are completed in a brief period and often do not involve a continuing relationship with the client. The committee believes this proposal provides sufficient safeguards regarding the appearance of objectivity and integrity with respect to the member's performance of the covered attest engagements.

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  Reports on audited financial statements of brokers and dealers in securities : amendment to AICPA audit and accounting guide Audits of brokers and dealers in securities; Statement of position 89-1;

  American Institute of Certified Public Accountants. Stockbrokerage and Investment Banking Committee

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  Reports on the internal control structure in audits of brokers and dealers in securities; Statement of position 89-4;

  American Institute of Certified Public Accountants. Stockbrokerage and Investment Banking Committee

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  Accounting for developmental and preoperating costs, purchases, and exchanges of take-off and landing slots, and airframe modifications : September 30, 1988 amendment to AICPA industry audit guide, Audits of airlines; Statement of position 88-1;

  American Institute of Certified Public Accountants. Accounting Standards Division

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  Proposed statement of position : definition of substantially the same for holders of debt instruments;Definition substantially the same for holders of debt instruments; Exposure draft (American Institute of Certified Public Accountants), 1988, Apr. 29

  American Institute of Certified Public Accountants. Accounting Standards Division, American Institute of Certified Public Accountants. Committee on Banking, American Institute of Certified Public Accountants. Savings and Loan Associations Committee, and American Institute of Certified Public Accountants. Stockbrokerage and Investment Banking Committee

  The AICPA's Banking Committee, Savings and Loan Associations Committee, and Stockbrokerage and Investment Banking Committee conclude the following: For debt instruments, including mortgage-backed securities, to be substantially the same, all the following criteria must be met: A. The debt instruments must have the same primary obligor, except for debt instruments guaranteed by a sovereign goverment, central bank, or agency, thereof, in which case the guarantor must be the same. B. The debt instruments must be identical in form and type. C. The debt instruments must bear the identical contractual interest rate. D. The debt instruments must have the same maturity except in the case of mortgage-backed pass-through securities for which the mortgages collateralizing the securities must be similar with respect to maturities (that is, expected remaining lives) resulting in approximately the same market yield. E. In the case of mortgage-backed pass-through securities, the securities must be collateralized by a similar pool of mortgages, such as single-family residential mortgages. F. The debt instruments must have the same aggregate unpaid principal amounts, except in the case of mortgage-backed pass-through securities, the aggregate principal amounts of the mortgage-backed securities given up and the mortgage-backed securiities reacquired must be within the accepted "good delivery" standard for the type of mortgage-backed security involved.

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  Proposed statement on auditing standards : compliance auditing : the auditor's responsibility for testing compliance with laws, regulations, and contractual terms governing financial assistance certain entities receive from government ;Compliance auditing : the auditor's responsibility for testing compliance with laws, regulations, and contractual terms governing financial assistance certain entities receive from government; Exposure draft (American Institute of Certified Public Accountants), 1988, May 6

  American Institute of Certified Public Accountants. Auditing Standards Board

  In response to findings that a large proportion of independent audits of federal financial assistance were substandard, the AICPA Task Force on the Quality of Audits of Governemental Units was formed to develop a comprehensive plan to improve the quality of audits of governmental units. That plan, presented in a March 1987 report, included a recommendation that "a statement on auditing standards relating to auditing for and reporting on compliance with applicable laws and regulations should be developed and issued." This proposed Statement provides guidance on applying the requirements of SAS No. 54, Illegal Acts by Clients, to audits of certain entities that receive financial assistance from government. It explains the relationship between those requirements and the requirements of the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions issued by the United States General Accounting Office. It also provides guidance on testing compliance with laws and regulations applicable to federal financial assistance programs in audits performed in accordance with the Single Audit Act of 1984.

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  Proposed statement on auditing standards : special reports ;Special reports; Exposure draft (American Institute of Certified Public Accountants), 1988, Aug. 31

  American Institute of Certified Public Accountants. Auditing Standards Board

  This Statement changes generally accepted auditing standards as follows: (1) Prescribes a new special report form that parallels the form of the new auditor's standard report in SAS no. 58, Reports on Audited Financial Statements; (2) Clarifies that there is no requirement to describe in the special report how the presentation differs from a presentation in conformity with generally accepted accounting principles; (3) Amends guidance on reporting on compliance with contractual agreements in connection with an audit by restricting the distribution of these reports and limiting the matters that an auditor can provide assurance on to auditing and accounting matters; (4) Clarifies requirments for issuing, and restricts the distribution of, special reports on financial presentations prepared to comply with a basis of accounting prescribed in a contract or agreement that results in a) a presentation that in not GAAP or an other comprehensive basis of accounting (OCBOA) or b) an incomplete GAAP or OCBOA presentation. 5. Deletes the requirement to express an adverse opinion on presentations prepared to comply with contractual agreements or regulatory provisions that are not in conformity with GAAP or OCBOA.

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  Illustrative auditor's reports on financial statements of employee benefit plans comporting with statement on auditing standards no. 58, reports on audited financial statements, December 15, 1988; Statement of position 88-2;

  American Institute of Certified Public Accountants. Auditing Standards Division

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  Proposed statement of position : questions concerning accountants' services on prospective financial statements : Proposed amendment to AICPA Guide for Prospective Financial Statements;Proposed amendment to AICPA Guide for Prospective Financial Statements : Questions concerning accountants' services on prospective financial statements; Exposure draft (American Institute of Certified Public Accountants), 1988, Sept. 2

  American Institute of Certified Public Accountants. Auditing Standards Division. Forecasts and Projections Audit Issues Task Force

  The Forecasts and Projections Audit Issues Task Force developed this proposed statement of position (SOP) in response to questions raised by practitioners about some of the procedural and reporting guidance contained in the AICPA Guide for Prospective Financial Statements. This SOP included some of these questions and the recommended responses. Specifically, the SOP provides additional guidance in these areas: 1. Reporting on financial forecasts that include a projected sale of an entity's real estate investment; 2. Sales prices assumed in a projection of the sale of an entity's real estate investment; 3. Reporting on information accompanying a financial forecast in an accountant-submitted document; 4. Financial projections included in general-use documents; 5. Support for tax assumptions; 6. Periods covered by an accountant's report on prospective financial statements.

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  Proposed statement of position : directors' examinations of banks : proposed amendment to AICPA industry audit guide, Audits of Banks;Directors' examinations of banks : proposed amendment to AICPA industry audit guide, Audits of Banks; Exposure draft (American Institute of Certified Public Accountants), 1988, Feb. 15

  American Institute of Certified Public Accountants. Banking Committee

  This proposed statement of position modifies the exhibits in appendix C of the 1983 AICPA Industry Audit Guide, Audits of Banks, "Suggested Guidelines for CPA Participation in Bank Directors' Examinations. The SOP emphasizes the scope limitations when CPAs are engaged to perform directors' examinations, particularly those scope limitations that affect accounts with higher risk in the banking industry. Briefly, the principal modifications to the exhibits in appendix C recommended in the SOP include the following: (1) Incorporation of a statement in the illustrative engagement letter and illustrative report identifying the omission of certain procedures relating to accounts with higher risk (for example loans) that are normally performed during an audit of the financial statements in accordance with GAAS; (2) Expansion of the accounts identified in the supplement to the engagement letter to include those with higher risk, such as loans and the allowance for credit losses, (3) Substitution of procedures relating to "Loans" for procedures relating to "Cash and Due From Banks."

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  Proposed audit and accounting guide : audits of providers of health care services ;Audits of providers of health care services; Exposure draft (American Institute of Certified Public Accountants), 1988, March 15

  American Institute of Certified Public Accountants. Health Care Committee and Health Care Audit Guide Task Force

  This proposed guide has been prepared to assist the independent auditor in examining and reporting on the financial statements of entities whose principal operations consist of providing health care services to individuals. It describes relevant matters or procedures unique to those entities and focuses on specific problems of auditing and reporting on the financial statements of the health care entities covered by the scope. This proposed guide supersedes the Industry Audit Guide titled Hospital Audit Guide (1972) and the following statements of position: 1. Clarification of Accounting, Auditing, and Reporting Practices Relating to Hospital Malpractice Loss Contingencies; 2. SOP 78-1, Accounting by Hospitals for Certain Marketable Equity Securities; 3. SOP 81-2, Reporting Practices Concerning Hospital-Related Organizations; 4. SOP 85-1, Financial Reporting by Not-for-Profit Health Care Entities for Tax-Exempt Debt and Certain Funds Whose Use Is Limited. This proposed guide includes illustrations of the form and content of financial statements for the health care entities considered and the auditor's reports thereon.

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  Proposed standards for performing and reporting on quality reviews ;Performing and reporting on quality reviews; Exposure draft (American Institute of Certified Public Accountants), 1988, Oct. 10

  American Institute of Certified Public Accountants. Quality Review Executive Committee

  This proposed statement establishes the standards for performing and reporting on all reviews conducted under the quality review program. The standards are applicable to firms enrolled in the program, to individuals and firms who perform and report on reviews, to state societies that participate in the administration of the program, to associations of CPA firms that assist their members in arranging and carrying out quality reviews, and to the AICPA Quality Review Division itself. Specifically, this proposed statement: 1. Provides distinctly different performance and reporting standards for two types of quality reviews — an on-site review for firms that examine historical or prospective financial statements and an off-site review for firms that issue compilation or review reports, but perform no examinations of historical or prospective financial statements. 2. Provides guidance on general considerations applicable to all quality reviews, emphasizing the importance of independence and confidentiality and the need to avoid conflicts of interest. 3. Describes how review teams are formed and what qualifications must be possessed by review team members and the team captain. 4. Defines the responsibilities of the review team, the reviewed firm, and the entity administering the review and provides standards, procedures, and guidelines that should be followed by each participant in the process. In addition, the appendixes to this proposed statement provide guidance on considerations governing the type of report issued on each type of review and include illustrations of various reports, letters of comment, and letters of response by reviewed firms.

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  Proposed audit and accounting guide : common interest realty associations ;Common interest realty associations; Exposure draft (American Institute of Certified Public Accountants), 1988, Aug. 31

  American Institute of Certified Public Accountants. Task Force on Accounting for Common Interest Realty Associations

  This proposed audit and accounting guide provides guidance on the following matters: 1. Accounting recognition of common property and facilities. Questions arise as to whether the common property in a condominium or planned unit development (PUD) and improvements on such property should be reported in a CIRA's financial statements. This proposed guide provides guidance on the recognition of assets maintained or owned by a CIRA. Questions relating to the accounting treatment of recognized assets, the effect of the manner in which the assets were acquired, and depreciation policies are discussed. 2. Major repairs and replacements. A fundamental issue affecting a CIRA's financial condition is whether the CIRA has estimated its future needs for major repairs and replacements and has designated funds for those needs. Because a CIRA's primary function is to maintain and replace common property, the CIRA's legal documents and some state statutes require it to accumulate funds for future major repairs and replacements. This proposed guide discusses disclosure of anticipated major repairs and property replacements and the auditor's role in evaluating the adequacy of disclosures and reporting on the fund for future major repairs and replacements. 3. Financial reporting. The widespread use of financial reports of CIRAs by potential buyers, lenders, sellers, and others creates a need for financial statement formats that are comparable. This proposed guide recommends a format and presents illustrations. 4. Method of accounting. Under GAAP, CIRAs account for their 'financial activities using the accrual basis of accounting. Alternatively, another comprehensive basis of accounting, such as cash basis, may also be used if the results of applying that basis do not differ substantially from the results using the accrual basis. This proposed guide discusses the various methods. 5. Budgets. CIRAs are generally required by their governing documents to base members' assessments on annual budgets. This proposed guide discusses the development of budgets and their implementation in the operations of CIRAs. o Income taxes. The Internal Revenue Service considers most CIRAs to be taxable entities that are required to file federal income tax returns. Guidelines for determining the tax filing alternatives for CIRAs are discussed in this proposed guide. 6. Audit considerations. Audit procedures specifically applicable to CIRAs are discussed. 7. Review and compilation engagements. Because many CIRA engagements are compilations or reviews, applicable procedures are discussed. 8. Cooperative housing corporations. Issues unique to audits of cooperative housing corporations and financial reporting requirements for those entities are discussed.

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  Proposed statement of position : accounting for frequent travel award programs : proposed amendment to AICPA industry audit guide Audits of airlines ;Accounting for frequent travel award programs : proposed amendment to AICPA industry audit guide Audits of airlines; Exposure draft (American Institute of Certified Public Accountants), 1988, Aug. 31

  American Institute of Certified Public Accountants. Task Force on Airlines

  This proposed statement of position (SOP) provides guidance on applying generally accepted accounting principles in accounting for frequent travel award programs. Briefly, the proposed SOP recommends the following: 1. An amount based on an allocated revenue value of the free travel awards should be deferred as mileage is accumulated. 2. The amounts deferred should be recognized as revenue when free travel awards are used. 3. An adjustment should be made to reflect the cumulative effect of the change in accounting principle when the SOP is first applied.

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  Accounting for asserted and unasserted medical malpractice claims of health care providers and related issues : proposed statement of position;Proposed statement of position : Accounting for asserted and unasserted medical malpractice claims of health care providers and related issues; Exposure draft (American Institute of Certified Public Accountants), 1983, July 22

  American Institute of Certified Public Accountants. Accounting Standards Division

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  Accounting for joint costs of informational materials and activities of not-for-profit organizations that include a fund-raising appeal; Statement of position 87-2;

  American Institute of Certified Public Accountants. Accounting Standards Division

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  Proposed statement on auditing standards : auditing accounting estimates ;Auditing accounting estimates; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  Accounting estimates are based on subjective factors. Consequently, controls over estimates are often more difficult to establish than controls over factual information, and the potential for bias in estimates may be greater. Although professional standards provide guidance about auditing some specific accounting estimates, no general guidance concerning the audit of accounting estimates has been established. This proposed Statement is intended to provide that guidance.

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  Proposed statement on auditing standards : communication with audit committees or others with equivalent authority and responsibility;Communication with audit committees or others with equivalent authority and responsibility; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  During audits of entities' financial statements, auditors acquire information that may help persons, such as audit committees or owners of owner-managed enterprises, fulfill their responsibility for overseeing auditing and financial reporting. Such information, however, has not always been communicated effectively. The Auditing Standards Board is issuing this Statement to increase the flow of useful information from auditors to audit committees and others with equivalent responsibilities.

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  Proposed statement on auditing standards : illegal acts by clients;Illegal acts by clients; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  The Audting Standards Board is issuing this proposed statement on auditing standards: (1) To clarify the auditor's responsibility for detecting illegal acts and for communicating them to parties inside and outside the entity; and (2) To ensure that the audit committee or its equivalent is informed about illegal acts that come to the auditor's attention. Language : eng

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  Proposed statement on auditing standards : omnibus statement on auditing standards, 1987 ;Omnibus statement on auditing standards, 1987; Exposure draft (American Institute of Certified Public Accountants), 1987, Sept. 4

  American Institute of Certified Public Accountants. Auditing Standards Board

  This proposed statement on auditing standards contains a number of technical amendments. The amendments are needed to: (1) Recognize, in accordance with a resolution by the Council of the AICPA, the Governmental Accounting Standards Board (GASB) as the body to establish financial accounting principles for state and local governmental entities pursuant to rule 203 and standards on disclosure of financial information for such entities outside financial statements in published financial reports containing financial statements under rule 204; (2) Revise the existing standards for the issuance of Financial Accounting Standards Board (FASB) Statement No. 89, Financial Reporting and Changing Prices, which rescinds the FASB's requirement to disclose supplementary information on the effects of changing prices. SAS Nos. 5, 27, and 29 are being amended.

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  Proposed statement on auditing standards : the auditor's consideration of an entity's ability to continue in existence ;Auditor's consideration of an entity's ability to continue in existence; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  Because businesses sometimes fail shortly after auditors have expressed unqualified opinions on their financial statements, the public has questioned whether auditors have assumed sufficient responsibility for evaluating the continued existence of an entity. The Auditing Standards Board is issuing this proposed statement on auditing standards to better serve the users of financial statements by requiring the auditor to evaluate continued existence in all audits and to modify the audit report when substantial doubt exists about an entity's continued existence.

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  Proposed statement on auditing standards : The auditor's responsibility for assessing control risk ;Auditor's responsibility for assessing control risk; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  This Statement was issued: (1) To emphasize the importance of internal control to audit planning by broadening the auditor's responsibility to study and evaluate internal control when planning an audit; (2) To clarify and bring up to date the guidance on the auditor's study and evaluation of internal control by incorporating the concepts concerning audit evidence and audit risk that have evolved in practice and that have been established in auditing standards issued subsequent to the issuance of AU section 320, The Auditor's Study and Evaluation of Internal Control (AICPA Professional Standards, Vol. 1).

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  Proposed statement on auditing standards : the auditor's responsibility to detect and report errors and irregularities ;Auditor's responsibility to detect and report errors and irregularities; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  Some recent business failures have caused the public to question whether auditors: (1) Have assumed sufficient responsibility to detect and report possible irregularities; (2) Have been sufficiently effective in detecting material errors and irregularities. The Auditing Standards Board is issuing this proposed statement on auditing standards to better serve the public interest by: (1) Expanding the auditor's responsibility to detect and report irregularities and (2) Improving the auditor's ability to detect material errors and irregularities (a) by discussing client characteristics that may increase the risk of material errors and irregularities and heighten professional skepticism concerning them and (b) by indicationg how auditors might respond to those characteristics in planning and performing audit procedures and evaluating results.

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  Proposed statement on auditing standards : The auditor's standard report ;Auditor's standard report; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  The Auditing Standards Board is issuing this Statement to help the public understand the auditor's role by requiring the auditor's standard report to more explicitly address: (1) The responsibility the auditor assumes; (2) The procedures the auditor performs; (3) The assurance the auditor provides.

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  Proposed statement on auditing standards : the communication of control-structure related matters noted in an audit;Communication of control-structure related matters noted in an audit; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  Management, audit committees, and others repsonsible for internal control in an entity have indicated that they have difficulty understanding the auditor's report on material weaknesses in internal control identified in a financial statement audit. These users, and many auditors, also have indicated that the concept of a material weakness in internal control is ambiguous and, therefore, difficult to apply in practice. They also believe that because the concept relates only to material misstatements of financial statements, some significant internal control deficiencies may not be reported. This proposed statement on auditing statnadards would clarify report language and replace the concept of material weakness in internal control with a broader, more operational concept of reportable internal control conditions.

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  Proposed statement on standards for attestation engagements : examination of management's discussion and analysis;Examination of management's discussion and analysis; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  Financial statement users are interested in information about the risks and uncertainties that could significantly affect an entity's future cash flows, results of operations, and financial condition. A principal source of such information is the Management's Discussion and Analysis (MD&A) that entities subject to the Securities and Exchange Commission (SEC) are required to present. Because of the importance of MD&A to users, an entity may engage an independent public accountant to attest to the representations contained in that information. This proposed statement on standards for attestation engagements provides performance and reporting guidance for such engagements.

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  Proposed statements on auditing standards: analytical procedures ;Analytical procedures; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb 14

  American Institute of Certified Public Accountants. Auditing Standards Board

  This proposed statement on auditing standards responds to public expectations of auditors to assume more responsibility for detecting fraudulent financial reporting by requiring the use of analytical procedures in all audit engagements. Analytical procedures can be effective in identifying financial misstatements and alerting the auditor to the possiblity of certain types of material irregularity.

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  Proposed audit and accounting guide : audits of government contractors ;Audits of government contractors; Exposure draft (American Institute of Certified Public Accountants), 1987, Nov. 2

  American Institute of Certified Public Accountants. Government Contractors Guide Special Committee

  A significant period of time has elapsed since the publication in 1975 of the Audits of Government Contractors. In the interim, the pace of change in both the government contracts process and financial reporting requirements has accelerated, thus increasing the need for further guidance. Therefore, the guide has been revised to assist independent accountants in examining and reporting on financial statements of government contractors. The government contracts environment grows more complex with the addition of each new statute and regulation, and the significant rate of change in those regulations requires constant attention and guidance to remain current. Furthermore, effective application of the regulations in a given circumstance requires extensive knowledge of the regulations, cases interpreting the regulations, and relevant guidance for implementation. Both business persons and accounting professionals associated with financial reporting of government contractors should understand the legislative and regulatory requirements as well as the business risks unique to government contractors. The government contracting process generates additional risks through the funding and review processes. The application of this guide is unique because the government purchases all types of goods and services and, consequently, affects a wide variety of industries. Furthermore, government contract rules and regulations apply to both contracts and subcontracts and prime contractors and subcontractors. The objectives of this guide are to provide (1) a general background of the environment and (2) practical guidance to independent accountants on the accounting, auditing, and financial reporting for government contractors. In addition, the guide: 1. Identifies relevant regulations and professional accounting pronouncements and summarizes key provisions of those regulations and pronouncements. This includes government contract, SEC, financial reporting, and tax accounting requirements. 2. Describes the fundamental activities in the government contracts process. 3. Describes the business and operating risks and their effects on the audit and reporting processes. 4. Identifies auditing and financial reporting issues and describes the prevalent practices. 5. Provides a glossary of terms and an annotated bibliography for reference.

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  Proposed audit and accounting guide : audits of property and liability insurance companies;Audits of property and liability insurance companies; Exposure draft (American Institute of Certified Public Accountants), 1987, July 22

  American Institute of Certified Public Accountants. Insurance Companies Committee

  This audit and accounting guide, which supersedes the 1966 AICPA Industry Audit Guide, Fire and Casualty Insurance Companies and the statements of position that amended that guide, has been prepared to assist the independent auditor in examining and reporting on financial statements of property and liability insurance companies. This guide describes those operating conditions and auditing procedures that are unique to the industry and illustrates the form and content of financial statements and disclosures for property and liability insurance companies, pools, syndicates, and other organizations such as governmental insurance pools. Chapter 1 discusses the nature, conduct, and regulation of the insurance industry. Other significant areas discussed in this guide include: 1. Audit considerations, including a discussion of the study and evaluation of internal control and EDP. 2. The premium cycle, which includes a discussion of rating, transactions, accounting principles, and special risk considerations. 3. The claims cycle, which includes a discussion of accounting practices and special risk considerations. 4. The investment cycle, which includes a discussion of regulation, various investment alternatives, accounting practices, and special risk considerations . 5. Reinsurance, which includes a discussion of the types of reinsurance, accounting practices, ceded reinsurance, and assumed reinsurance. 6. Taxes, which includes both federal and state taxation. 7. Differences between statutory accounting practices and generally accepted accounting principles. 8. The auditor's report, which includes a discussion of the various types of reports and illustrates those reports. In addition, appendices B and C discuss internal accounting controls and auditing objectives and procedures. Users of this audit guide should be aware of certain accounting issues affecting the insurance industry that are being studied by the accounting profession. The Insurance Companies Committee and the AICPA Accounting Standards Executive Committee (AcSEC) have prepared certain issues papers and are developing drafts of others to discuss those issues as well as present resolutions for them.

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  Proposed statement on standards for attestation engagements : attest services related to MAS engagements ;Attest services related to MAS engagements; Exposure draft (American Institute of Certified Public Accountants), 1987, May 29

  American Institute of Certified Public Accountants. Management Advisory Services Executive Committee

  This proposed statement amends the Statement on Standards for Attestation Engagements, Attestation Standards. It provides guidance on performing an attest service as part of a management advisory services (MAS) engagement and on the use in attest engagements of assertions, criteria, and evidence derived from a concurrent or prior MAS engagement. It also distinquishes the evaluations that practitioners may make in MAS engagements.

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  Omnibus proposal of Professional Ethics Division interpretations and rulings ;Revision to interpretation 101-5 under rule of conduct 101, "Independence:" The meaning of certain terminology used in Rule 101-A-3;Meaning of certain terminology used in Rule 101-A-3;Ruling No. 66 under rule of conduct 101, "Independence:" Member's investment in individual retirement account or Keogh Retirement Plan;Member's investment in individual retirement account or Keogh Retirement Plan;Ruling No. 67 under rule of conduct 101, "Independence:" Member's depository relationship with client financial institution;Member's depository relationship with client financial institution;Ruling No. 68 under rule of conduct 101, "Independence:" Servicing of Loan;Servicing of Loan;Ruling No. 69 under rule of conduct 101, "Independence:" Blind Trust;Blind Trust;Ruling No. 70 under rule of conduct 101, "Independence:" Joint investment with a promoter and/or general partner;Joint investment with a promoter and/or general partner;Ruling No. 182 under rule of conduct 501, "Acts Discreditable:" Termination of engagement prior to completion;Termination of engagement prior to completion;Withdrawal of interpretation 201-3 under rule 201, "General Standards:" Shopping for Accounting or Auditing Standards;Shopping for Accounting or Auditing Standards; Exposure draft (American Institute of Certified Public Accountants), 1987, May 25

  American Institute of Certified Public Accountants. Professional Ethics Executive Committee

  The Professional Ethics Executive Committee proposes to revise Interpretation 101-5 in order to provide guidance to members with respect to the terms "loans" and "financial institution" as used in Rule 101. Investment by a member's IRA or Keogh plan in a client would be considered to impair that member's independence with respect to that client. The member's independence would not be considered impaired with respect to the financial institution provided that the checking account, savings accounts, certificates of deposit, and money market account are fully insured. The mere servicing of a member's loan by a client financial institution would not impair the member's independence with respect to the client. A member's independence would be considered impaired whether or not the member's direct financial interest in the client is placed in a blind trust. Ruling No. 62 under ET section 191 provides guidance for joint investments when both the member and client are limited partners. If a member has been engaged to prepare a tax return and the client or the member terminates the engagement before the tax return is delivered to the client, the member's responsibility is to return only those records originally provided. The committee proposed that Interpretation 201, "Shopping for Accounting or Auditing Standards," be withdrawn.

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  Proposed statement of position : Accounting for frequent travel award programs, developmental and preoperating costs, purchases and exchanges of take-off and landing slots, and airframe modifications ;Accounting for frequent travel award programs, developmental and preoperating costs, purchases and exchanges of take-off and landing slots, and airframe modifications; Exposure draft (American Institute of Certified Public Accountants), 1987, June 30

  American Institute of Certified Public Accountants. Task Force on Airlines

  Until certain practical limitations and cost benefit considerations have been overcome, the incremental cost of providing free travel awards generally should be accrued when the award levels are achieved. Developmental costs related to preparation of operations of new routes should not be capitalized as previously permitted under the AICPA Industry Audit Guide, Audits of Airlines. The costs of acquiring take-off and landing slots are identifiable intangible assets that should be accounted for in conformity with Accounting Principles Board (APB) Opinion No. 17, Intangible Assets. The costs associated with airframe modifications that enhance the usefulness of the aircraft should be capitalized and depreciated over the lesser of the estimated useful lives of the aircraft or the modifcations.

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  Comment letters to the National Commission on Commission on Fraudulent Financial Reporting, 1987 (Treadway Commission) Vol. 1

  Data General; Bernard B. Lynn; Jefferson Bankshare; New Alternatives Fund; CTS Corporation; Drexel University; Henry R. Jaenicke; Health Care Affiliates; Jonathan Pittway; Manfred E. Philip; Willis A. Smith; Mobil Corporation; Robert W. Bramlett; Joseph M. Cassano; Medalist Industries; Ralph S. Saul; Reginald H. Jones; Dairy Mart Convenience Stores; Lombard Associates; Defense Contract Audit Agency; National Association of Accountants; FMC Corporation; New York State Society of Certified Public Accountants; Kansas City Power & Light Company; General Electric Company; Melvin L. Hirch; United Guardian; DynCorp; Palm Desert National Bank; Central and South West Services; Nova Natural Resources Corporation; Household International; Raymond C. Dockweiler; University of Missouri-Columbia; Hillenbrand Industries; National Association of Accountants; Public Service Electric and Gas Company; Telecommunications; Edmund W. Littlefield; Sterling Drug; General Re Corporation; Doyle Z. Williams; Service Fracturing Company; GTE Corporation; R. H. Macy & Company; John M. Crockett; American Society of Corporate Secretaries; Procter & Gamble Company; Goodyear Tire & Rubber Company; Anheuser-Busch Companies; Riggs National Bank; Will& Emery McDermott; Royal Insurance; Steven Rice; Multimedia; John F. Burlingame; Francis Kemp; NCNB Corporation; Honeywell International; Hershey Entertainment and Resort Company; Institute of Internal Auditors. Calgary Chapter; Crowe Chizek & Company; Public Service Indiana; W. R. Persons; USX Corporation; Gary, Stosch, Walls & Company; Francine Neff; Louisiana Land and Exploration Company; St. Louis County Council. Office of the County Auditor; Michael W . Maher; University of Chicago; Merck & Company; Upjohn Company; Howard Hughes Medical Institute; General Mills; Mitchell Rothkopf; CSX Corporation; Clark Management Services; Ford Motor Company; Philip Morris Companies; Becton Dickinson and Company; Pennsylvania Institute of Certified Pubic Accountants; William Lundquist; Northeast Utilities; Dayton Hudson Corporation; Newell Rubbermaid; Maryland Association of Certified Public Accountants; San Diego Gas & Electric; Freeman Properties; Southwestern Bell Corporation; Ameritech; National Association of Accountants. Management Accounting Practices Committee; Baird, Kurtz & Dobson; Walter O. Baggett; Manhattan College; Texas Instruments; Philip F. Jacoby; American University; Unites States. Department of Education; Howard Savings Bank; DuPont; American Express Company; Machinery and Allied Products Institute; Washington Gas Light Company; Rockwell International; ITT Corporation; Pennzoil Company; AT&T; Financial Executives Institute; Kimberly-Clark Corporation; ThomasNet; Theresa Dailey; Bankers Trust Company; Wells Fargo Bank; PepsiCo; National Commission of Fraudulent Financial Reporting; and James C. Treadway

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  Comment letters to the National Commission on Commission on Fraudulent Financial Reporting, 1987 (Treadway Commission) Vol. 2

  National Commission of Fraudulent Financial Reporting; James C. Treadway; College of William & Mary; CPC International; Florida. Department of Banking and Finance. Office of Comptroller; Thompson, Greenspon & Company; F. W. Woolworth & Company; Midland Company; Stanley Works; American Brands; Eli Lilly and Company; Delmarva Power; Barry Wright Corporation; American Institute of Certified Public Accountants. Public Oversight Board; Virginia Power and Electric Company; Seidman & Seidman; Primark Corporation; Arthur Andersen. Public Review Board; FDIC; Gulf Canada Corporation; Eamon Kelly; Tulane University; Texaco; Boeing Company; Carolina Power & Light Company; Xerox Corporation; BellSouth Corporation; Canadian National; Tom A. Nelson; University of Utah; Curtis C. Veerschoor; DePaul University; Colorado Society of Certified Public Accountants; Federal Reserve System. Board of Governors; National Association of State Boards of Accountancy; MSU System Services; American Bar Association; Washington Public power Supply System; General Motors Corporation; Pacific Gas and Electric Company; Premark International; Bank Administration Institute; General Dynamics Corporation; Life Investors; Sears, Roebuck and Company; Greyhound Corporation; Sovran Financial Corporation; Black & Decker Corporation; Goodyear Tire & Rubber Company; Ashland Oil; Bob Spilman; Shell Oil Company; John Zick; Gordon Pilcher; Carol Inbery; California State University; 3M; Avon Products; Consolidated-Bathurst; Chevron Corporation; National Council of Savings Institutions; Thomas Dyckman; American Accounting Association. Treadway Commission Task Force; Contel Corporation; First Chicago; American Standard; Southern California Edison Company; Public Service Company of Colorado; W. R. Grace & Company; Unocal Corporation; Sonat; Hershey Foods Corporation; Atlantic City Electric Company; Eaton Corporation; Champion International Corporation; Thomas Holton; Norton Company; National Association of Accountants; Monsanto Company; Pharmaceutical Manufacturers Association; May Department Stores Company; AmSouth Bancorporation; Schering-Plough Corporation; IBM Corporation; Aetna Life and Casualty; Citicorp; Business Rountable; Valero Energy Corporation; Scott Paper Company; Washington Mutual Savings Bank; Johnson & Johnson; PPG Industries; Endevco; Midland Company; Office of City Auditor, Portland (Oregon). Office of City Auditor; American President Companies; W. M. Ellinghaus; Price Waterhouse; Peat Marwikc Main & Company; Deloitte Haskins & Sells; Touche Ross & Co.; Arthur Young & Company; Arthur Andersen; Ernst & Whinney; Coopers & Lybrand; American Institute of Certified Public Accountants; Timken Company; Robinson Grant & Company; Central Louisiana Electric Company; Institute of Internal Auditors; Federal National Mortgage Association; J. S. Parker; U.S. Home Corporation; New York City. Office of Comptroller; International Paper Company; Merrill Lynch & Company; Dow Chemical Company; Continental Illinois Corporation; Anheuser-Busch Companies; United Virginia Bankshares; Yellow Freight System, Inc. of Delaware; Patrick J.F. Gratton; Warner Lambert; Pacific Telesis; United States. Comptroller General; International Minerals & Chemical Corporation; Bristol-Myers Company; Fifth Third Bancorp; Briercroft Savings Association; United Water Resources; Consolidated Edison Company of New York; University of Illinois at Urbana-Champaign; Procter & Gamble Company; U.S. House of Representatives; John Dingell; Wm. Wrigley Jr. Company; and JC Penney Company

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  Proposed statement of position : accounting for joint costs of informational materials and activities of not-for-profit organizations that include a fund-raising appeal;Accounting for joint costs of informational materials and activities of not-for-profit organizations that include a fund-raising appeal; Exposure draft (American Institute of Certified Public Accountants), 1986, May 23

  American Institute of Certified Public Accountants. Accounting Standards Division

  Proposed Amendment of SOP 78-10, Accounting Principles and Reporting Practices for Certain not-for-Profit Organizations and of AICPA Industry Audit Guide, Audits of Voluntary Health and Welfare Organizations. The proposed statement of position recommends the folowing: If It can be demonstrated that a bona fide program or management and general function has been conducted in conjunction with an appeal for funds, joint costs or informational materials or activities that include a fund-raising appeal should be allocated between fund-raising and the appropriate program or management and general function.

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  Reporting repurchase-reverse repurchase agreements and mortgage-backed certificates by savings and loan associations : amendment to AICPA audit and accounting guide, Savings and loan associations; Statement of position 86-1;

  American Institute of Certified Public Accountants. Accounting Standards Division

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  Proposed audit and accounting guide : audits of agricultural producers and agricultural cooperatives ;Audits of agricultural producers and agricultural cooperatives; Exposure draft (American Institute of Certified Public Accountants), 1986, Jan. 17

  American Institute of Certified Public Accountants. Agribusiness Special Committee

  This proposed audit and accounting guide primarily codifies existing practice in (1) auditing the financial statements of agricultural producers and agricultural cooperatives and (2) accounting by those types of entities. AICPA Statement of Position (SOP) 85-3, Accounting by Agricultural Producers and Agricultural Cooperatives, is included as an appendix to this proposed guide; its recommendations on accounting for agricultural producers and agricultural cooperatives are an integral part of this proposed guide. SOP 85-3 and the accounting provisions of this guide do not apply to personal financial statements of agricultural producers or statements prepared on a comprehensive basis of accounting other than generally accepted accounting principles. They also do not apply to the following: growers of timber; growers of pineapple and sugarcane in tropical regions; raisers of animals for competitive sports; or merchants or noncooperative processors of agricultural products that purchase commodities from growers, contract harvesters, or others serving agricultural producers. Significant areas discussed in this guide include: 1. Cost accounting and cost allocations by agricultural producers. 2. Normal versus abnormal costs of agricultural producers. 3. Accounting for income taxes by agricultural producers and agricultural cooperatives. 4. Accounting for losses by agricultural cooperatives. 5. Departmental and functional accounting by agricultural cooperatives. 6. Auditing procedures applicable to producers' and cooperatives' investments in agricultural cooperatives. In addition, the proposed guide includes illustrative financial statements of an agricultural producer and of an agricultural cooperative.

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  National Curriculum, a Pathway to Excellence; Exposure Draft (American Institute of Certified Public Accountants), 1986, Jan. 31

  American Institute of Certified Public Accountants. Continuing Professional Education Division. National Curriculum Task Forces