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Proposed revision of statement of Tax policy number 8 : suggested improvements for the Social Security retirement system ;Suggested improvements for the Social Security retirement system; Exposure draft (American Institute of Certified Public Accountants), 1986, Aug. 1
American Institute of Certified Public Accountants. Federal Taxation Division
The proposed revision updates and provides additional supporting material for Tax Policy Statement Number 8 which was published in 1980. The Tax Policy Statement proposes revision to the Social Security system to make it actuarially more sound and to provide a fairer relationship between contributions and benefits.
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Statements on responsibilities in tax practice; Exposure draft (American Institute of Certified Public Accountants), 1986, Aug. 18
American Institute of Certified Public Accountants. Federal Taxation Executive Committee
This booklet represents a codification of the introductory statement and the eight Statements on Responsibilities in Tax Practice issued by the Tax Division of the AICPA. The Statements on Repsonibilities in Tax Practice began in 1964 and were last revised in 1975 to reflect changes in the Code of Professional Ethics. Since that time the Internal Revenue Code has been amended on many occasions with the addition of numerous taxes and penalties on tax preparers and/or clients' actions or lack thereof. The CPA is expected to be familiar with and comply with the preparer regulations, Treasury Ciruclar No. 230, the AICPA Rules of Conduct and related rulings or other interpretations.
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Proposed audit and accounting guide : finance companies (including lending activities of other enterprises);Finance companies (including lending activities of other enterprises); Exposure draft (American Institute of Certified Public Accountants), 1986, July 9
American Institute of Certified Public Accountants. Finance Companies Guide Special Committee
This proposed revised audit and accounting guide reflects changes in accounting and auditing literature that have occurred since the guide was last published in 1973. This proposed revision would apply to all finance companies and to lending activities of other enterprises. The proposed guide recommends the following changes in accounting practices, which the committee believes are desirable and warranted: 1. Recognition of interest income on finance receivables using the interest (actuarial) method (page 10); 2. Use of the accrual with suspension basis for recording interest income (pages 11 and 12); 3. Inclusion of interest as a holding cost in determining net realizable value of repossessed collateral expected to be held for a significant period (page 15). In addition, the proposed guide includes an expanded discussion of the insurance activities of finance companies (pages 49 through 56).
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Proposed statement of position : accounting by prepaid health care plans;Accounting by prepaid health care plans; Exposure draft (American Institute of Certified Public Accountants), 1986, Oct. 6
American Institute of Certified Public Accountants. Health Maintenance Organizations Task Force
This proposed statement of position provides guidance on applying generally accepted accounting principles in accounting for health care costs, contract losses, reinsurance, and acquisition costs of prepaid health care plans. Prepaid health care plans should accrue health care costs as services are rendered, including estimates of costs incurred but not yet reported to the plan. When expected future health care costs and maintenance expenses under a group of existing contracts will probably exceed anticipated future premiums and reinsurance recoveries on those contracts, a loss should be recognized. Reinsurance premiums should be reported as a health care cost. Acquisition costs of prepaid health care plans should be expensed as incurred.
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Omnibus proposal of Professional Ethics Division interpretations and rulings ;Ruling No. 64 under ET section 191: Joint investment with a promoter and/or general partner;Joint investment with a promoter and/or general partner;Ruling No. 65 under ET section 191: Member as director of agency for which client raises funds;Member as director of agency for which client raises funds;Ruling no. 66 under ET section 191: Use of CPA designation by member not in public practice;Use of CPA designation by member not in public practice;Interpretation 101-9: Meaning of certain independence terminology and the effect of family relationships on independence;Meaning of certain independence terminology and the effect of family relationships on independence;Interpretation 201-2: Prospective financial information;Prospective financial information;Interpretation 201-4: Definition of the term engagement as used in Rule 201--General standards;Definition of the term engagement as used in Rule 201--General standards;Interpretation 502-2, Subsection 5: False, misleading or deceptive acts in advertising or solicitation;False, misleading or deceptive acts in advertising or solicitation;Ruling no. 181 under ET section 591: Sale of a practice--Purchase of accounts;Sale of a practice--Purchase of accounts; Exposure draft (American Institute of Certified Public Accountants), 1986, June 13
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
Ethics Ruling No. 64 was developed to illustrate that a member's limited partnership investment in a nonclient limited partnership controlled by the same promoter and/or general partner as the member's audit (or other services requiring independence) client limited partnership would cause an impairment of independence under certain circumstances. Ruling No. 65 has been developed to advise members that under rule 101 of the AICPA Code of Professional Ethics the appearance of a member's independence would be considered to be impaired with respect to the foundation because of a member's service on the board of directors of an organization receiving funding from the foundation. Ruling No. 66 provides that the use of the CPA designation by a member who is not in public practice in a manner to imply that the member is independent of the employer will be considered a knowing mispresentation of fact. In Interpretation 101-9, the Ethics Executive Committee is proposing to limit the exception to professional employees not participating in the engagement. The revision of Interpretation 201-2 covers prospective financial information prepared for internal use only, partial presentations of prospective financial information and other matters not covered by that standard. Proposed Interpretation 201-4 states that the engagements with respect to which the General Standards of Rule 201 apply include the engagements described in the Statement on Standards for Attestation Engagements, the Statement on Standards for Accountants' Services on Prospective Financial Information, and certain Statements on Auditing Standards, which, while not applicable to audits of financial statements, are applicable to other types of engagements. The Professional Ethics Executive Committee proposes to delete from the Ethics Code Interpretation 502-2, Subsection 5, Testimonials and Endorsements. The Professional Ethics Executive Committee has concluded that the use of an account broker to facilitate the sale or a purchase of a practice would not be proscribed by Rule 503.
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Proposed ruling no. 66 under ET section 191 : use of CPA designation by member not in public practice ;Use of CPA designation by member not in public practice; Exposure draft (American Institute of Certified Public Accountants), 1986, June 13
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
To provide guidance to members not in public practice on the use of the CPA designation, the Professional Ethics Executive Committee proposes, subject to member comment, to issue Ruling 66 under ET section 191 of the AICPA Code of Professional Ethics. Ruling 66 provides that the use of the CPA designation by a member who is not in public practice in a manner to imply that the member is independent of the employer will be considered a knowing misrepresentation of fact.
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Proposed statement on standards for accounting and review services : reporting on personal financial statements included in written personal financial plans;Reporting on personal financial statements included in written personal financial plans; Exposure draft (American Institute of Certified Public Accountants), 1985, Dec. 18
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed Statement provides the accountant with an optional exemption from the requirements of Statement on Standards for Accounting and Review Services 1, as amended, for personal financial statements included in a written personal financial plan prepared by the accountant when such statements and the related plan have been developed solely to assist a client and a client's advisers in achieving the client's personal financial goals and objectives and for no other purpose. In those circumstances, the proposed Statement would require the accountant to issue a special form of written report and would specify the information required in that report.
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Accounting by agricultural producers and agricultural cooperatives; Statement of position 85-3;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for dollar repurchase, dollar reverse repurchase agreements by sellers-borrowers : amendment to AICPA audit and accounting guide, Savings and loan associations; Statement of position 85-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial reporting by not-for-profit health care entities for tax-exempt debt and certain funds whose use is limited : amendment to AICPA industry audit guide, Hospital audit guide; Statement of position 85-1;
American Institute of Certified Public Accountants. Accounting Standards Division
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Draft: Small business consulting practice aid: Assisting clients in developing personal financial plans, May 1985
American Institute of Certified Public Accountants (AICPA)
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Proposed authoritative statement : attestation standards;Attestation standards; Exposure draft (American Institute of Certified Public Accountants), 1985, Feb. 15
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement establishes standards that (A) Provide a framework for all "attest" engagements--that is, engagements to report on the reliability of assertions for third-party use--regardless of the subject matter or level of assurance. (B) Are a natural extension of (but do not supersede) the ten generally accepted auditing standards. (C) Make explicit three preconditions for attest services to be performed: (1) The attester has adequate knowledge of the subject matter. (2) There are reasonable measurement and disclosure criteria. (3) The assertions are capable of reasonably consistent estimation or measurement using such criteria. (D) Provide for two levels of attest assurance that can be reported to the general public: (1) Positive assurance--In reports that express conclusions on the basis of an "examination." (2) Negative assurance--In reports that express conclusions on the basis of a "review." (E) Provide for attest services based on agreed-upon criteria or procedures as long as the report is restricted to the parties who agreed upon the criteria or procedures.
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Proposed statement on auditing standard : reports on the application of accounting principles ;Reports on the application of accounting principles; Exposure draft (American Institute of Certified Public Accountants), 1985, Dec. 6
American Institute of Certified Public Accountants. Auditing Standards Board
Management, accountants, and others often consult with professionals, including other accountants, on the application of accounting principles to new transactions and financial products. This proposed statement provides guidance to accountants who provide this service and establishes performance and reporting standards that (A) Apply (1) to written reports on the application of accounting principles and (2) to oral reports on a specific transaction when the reporting accountant concludes that the report is intended to be used by the principal to the transaction as primary support for a decision on the application of accounting principles; (B) Require consultation with a principal's continuing accountant when evaluating those accounting principles at the request of a principal that relate to a specific transaction.
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Proposed statement on auditing standards : reporting on financial statements prepared for use in other countries ;Reporting on financial statements prepared for use in other countries; Exposure draft (American Institute of Certified Public Accountants), 1985, Oct. 15
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed statement establishes standards that apply to U.S. auditors who express an opinion on financial statements of a U.S. entity prepared in conformity with accounting principles of another country for use outside the United States. The proposed statement establishes standards that--(1) Require the auditor to obtain written representations from management regarding the distribution of such financial statements; (2) Permit the auditor to use a modified U.S.-style report form or a non-U.S. standard report if the financial statements are used only outside the United States or will not have more than limited use in the United States; (3) Permit the auditor to use dual reports or a U.S. standard report modified for U.S. GAAP departures if the financial statements will be used in the United States.
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Proposed statement on auditing standards : The auditor's consideration of uncertainties;Auditor's consideration of uncertainties; Exposure draft (American Institute of Certified Public Accountants), 1985, Nov. 8
American Institute of Certified Public Accountants. Auditing Standards Board
If adopted, this proposed Statement would supersede Statement on Auditing Standards No. 2, Reports on Audited Financial Statements, paragraphs 21 through 26. It provides additional guidance to assist the auditor in deciding whether to modify ("subject to") his report because of a matter involving an uncertainty. This reporting guidance follows the framework of FASB Statement No. 5, Accounting for Contingencies, which discusses contingencies in terms of the probable, reasonably possible and remote likelihood of their occurrence. Guidance regarding procedures for auditing uncertainties is also provided.
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Proposed statement of position : Reporting funds flows, liquidity, and financial flexibility for banks ;Reporting funds flows, liquidity, and financial flexibility for banks; Exposure draft (American Institute of Certified Public Accountants), 1985, Oct. 1
American Institute of Certified Public Accountants. Committee on Banking
The proposed statement recommends certain changes in the traditional format and presentation in statements of changes in financial position for banks in order to provide more meaningful guidance to accountants and bankers on this subject. The proposed statement of changes in financial position emphasizes financial resources invested in earnings assets. Related banking activities are presented together as financial resources provided by (1) operations, (2) deposits and other financing activities, and (3) nonearning investments of financial resources. The proposed statement of changes in financial position is based on changes in year-end balance sheet amounts rather than average balances. In addition to specific recommendations concerning form and content of banks' statements of changes in financial position, the proposed statement of position suggests additional types of explanatory disclosure that would not be embodied in the basic financial statements, but would help the reader better understand the interest rate sensitivity and funds management of banks.
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Proposed statement of position : Reporting repurchase-reverse repurchase agreements and mortgage-backed certificates by savings and loan associations ;Reporting repurchase-reverse repurchase agreements and mortgage-backed certificates by savings and loan associations; Exposure draft (American Institute of Certified Public Accountants), 1985, Oct. 28
American Institute of Certified Public Accountants. Committee on Savings and Loan Associations
The proposed statement recommends certain disclosures by savings and loan associations, as described in paragraph 30, for repurchase and reverse repurchase agreements, including dollar repurchase and dollar reverse repurchase agreements. In addition, the proposed statement of position recommends that mortgage-backed, pass-through certificates be reported separately on the statement of financial condition by savings and loan associations. The proposed statement also recommends that the market value of the mortgage-backed certificates be disclosed in the statement of financial condition or the notes to the financial statements.
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Proposed statement on standards for accounting and review services : reporting on personal financial plans;Reporting on personal financial plans; Exposure draft (American Institute of Certified Public Accountants), 1985, March 4
American Institute of Certified Public Accountants. Financial Planning Task Force and American Institute of Certified Public Accountants. Accounting and Review Services Committee
An exposure draft of a proposed Statement on Standards for Accounting and Review Services, entitled Reporting on Personal Financial Plans accompanies this letter. SSARS 1 requires, as a minimum that an accountant comply with the standards established for compilation services whenever they submit a financial statement to their client or others. Increasingly, accountants are providing comprehensive personal financial planning services to clients which may include personal financial statements, supplementary explanatory information and prospective financial information. Often personal financial plans present financial information on transactions which may be historical, pro forma or prospective. This information is often interspersed through narrative material and recommendations, which taken as a whole, comprises the overall personal financial plan. Some accountants assert that users of personal financial plans understand the nature, limitations, and objectives of a personal financial plan and that financial statements are incidental to the preparation of the plan. Given those assertions, applying SSARS would require some unusual considerations.
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Proposed audit and accounting guide : audits of investment companies ;Audits of investment companies; Exposure draft (American Institute of Certified Public Accountants), 1985, Jan. 15
American Institute of Certified Public Accountants. Investment Companies Special Committee
The proposed revision of the AICPA Industry Audit Guide, Audits of Investment Companies, reflects changes in accounting literature, laws, and regulations that have occurred since the guide was last published in 1973. The draft incorporates Statements of Position 74-11, 77-1, and 79-1; several amendments adopted into law by the Internal Revenue Code; revised SEC rules; and changes in industry practices. The draft recommends the following additional changes in accounting and reporting practices, which the committee believes are desirable and warranted: 1. The per share data presented as supplementary information has been modified and the amount of ratio information increased. Information on the portfolio turnover rate has been deleted. 2. The sample financial statements have been modified to reflect requirements in accordance with the SEC's revision of article 6 of Regulation S-X, which is effective for years ending after June 15, 1983. The most notable change is the adoption of an all-inclusive income statement. 3. The proposed guide recommends one accounting method for all tax-free business combinations of investment companies. That method most closely approximates the accounting followed for tax purposes. 4. Dividends declared on short securities are treated as an expense to reflect current preferred accounting treatment, not as a reduction of investment income as suggested in the present guide. 5. Chapters discussing unit investment trusts and variable annuities, including their financial statements, have been added. 6. The use of third-party reviews of internal accounting controls is discussed. 7. An accounting treatment for distribution expenses under a distribution plan adopted under rule 12(b)(l) of the Investment Company Act of 1940 is recommended. 8. The discussion of accounting matters related to portfolios has been expanded to include accounting for commodities and futures, forward placement and standby commitment contracts, repurchase agreements, and foreign investments. 9. The proposed guide states that using a statement of net assets in place of a statement of assets and liabilities is acceptable under GAAP and the particular use should depend on which presentation is more meaningful to the investor. The SEC's revised rules under article 6 of Regulation S-X proscribe the use of the statement of net assets if the amount of investment in securities of unaffiliated issuers is not at least 95 percent of total assets. 10. The SEC's August 15, 1984 proposal, "Semi-Annual Report Form for Registered Investment Companies," would replace Form N-1R and Form N-5R with Form N-SAR. If adopted, the final guide will be revised accordingly.
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Omnibus proposal of interpretations and rulings: Proposed interpretation 302-1: Meaning of the phrase "The Findings of Governmental Agencies" as stated in Rule 302 of the Rules of Conduct, Proposed interpretation 101-10: The effect on independence of relationships proscribed by Rule 101 with nonclient entities included with a member's client in the financial statements of a governmental reporting entity, Ruling No. 63 under ET section 191: Review of prospective financial information--Member's independence of promoters, Ruling No. 64 under ET section 191: Joint investment with a Promoter or general partner;Proposed interpretation 302-1: Meaning of the phrase "The Findings of Governmental Agencies" as stated in Rule 302 of the Rules of Conduct;Meaning of the phrase "The Findings of Governmental Agencies" as stated in Rule 302 of the Rules of Conduct;Proposed interpretation 101-10: The effect on independence of relationships proscribed by Rule 101 with nonclient entities included with a member's client in the financial statements of a governmental reporting entity;Effect on independence of relationships proscribed by Rule 101 with nonclient entities included with a member's client in the financial statements of a governmental reporting entity,The;Ruling No. 63 under ET section 191: Review of prospective financial information--Member's independence of promoters;Ruling No. 64 under ET section 191: Joint investment with a Promoter or general partner; Exposure draft (American Institute of Certified Public Accountants), 1985, May 17
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
It is the position of the Professional Ethics Executive Committee that a "finding of a governmental agency" in tax matters results from the settlement of a controversy with the appropriate govenment agency. Proposed Interpretation 101-10 requires a member issuing a report on the combined financial statements of a governmental reporting entity to be independent of the oversight entity and each of the component units included in the report. The AICPA Professional Ethics Division has developed proposed Ruling No. 63, "Review of Prospective Financial Information--Member's Independence of Promoters," to clarify the independence requirements and provide guidance in applying them. Ruling No. 62 unde ET Section 191 provides guidance for joint investments when both the member and client are limited partners but does not focus on the relationship that involves the client (or an officer, director, or principal owner thereof) functioning as the promoter or general partner.
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Reporting on personal financial plans (proposesed SSARS); (Exposure draft (American Institute of Certified Public Accountants), 1985, December 12
American Institute of Certified Public Accountants. Technical Information Division
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Proposed authoritative statement : Prospective financial statements ;Prospective financial statements; Exposure draft (American Institute of Certified Public Accountants), 1984, June 27
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement provides that an accountant who reports on, or consents to the use of his name in conjunction with, prospective financial statements that are not restriced to internal use should either compile or review the prospective financial statements, following the guidance in this Statement, and report accordingly. The proposed Statement is applicable to all accountants, whether engaged in accounting, auditing, tax, or MAS practices. The proposed Statement would (1) establish procedures and reporting standards for a compilation service on prospective financial statements; (2) extend the review service described in the 1980 AICPA guide, Guide for Review of a Financial Forecast, to financial projections and multiple projections and establish standards with respect to review services; (3) prohibit an accountant from compiling or reviewing prospective financial statements that omit a summary of significant assumptions; (4) permit an accountant to assemble or assist in assembling prospective financial statements without requiring him to issue a report on such statements as long as he does not consent to the use of his name in conjunction with such prospective financial statements.
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Proposed statement on auditing standards : Obtaining evidential matter regarding the completeness assertion ;Obtaining evidential matter regarding the completeness assertion; Exposure draft (American Institute of Certified Public Accountants), 1984, Dec. 27
American Institute of Certified Public Accountants. Auditing Standards Board
Statement on Auditing Standards No. 31, Evidential Matter, lists five broad categories of assertions embodied in financial statement components. Four of them deal with transactions and accounts that are included in the financial statements; one of them, the completeness assertion, deals with whether there are transactions and accounts that have been improperly excluded from the financial statements. The unique nature of the completeness assertion has caused practice problems in obtaining evidential matter regarding that assertion. This proposed Statement addresses those problems. The auditor should not rely solely on management's written representations as evidential matter regarding the completeness assertion. The auditor should obtain evidential matter regarding the completeness of those types of transactions that he has reason to believe have occurred. The auditor should not rely solely on internal accounting controls over completeness as evidential matter regarding the completeness assertion.
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Proposed statement on auditing standards : Reporting on pro forma financial information in SEC filings ;Reporting on pro forma financial information in SEC filings; Exposure draft (American Institute of Certified Public Accountants), 1984, June 29
American Institute of Certified Public Accountants. Auditing Standards Board
The objective of pro forma financial information is to show what the significant direct effects on historical financial information might have been had a consummated or proposed transaction or event occurred at an earlier date. This proposed statement provides guidance on the independent accountant's responsibilities when engaged to report on pro forma financial information contained in a filing with the SEC. Article 11 of Regulation S-X sets forth the SEC's requirements regarding pro forma financial information. The proposed Statement describes the conditions under which the accountant may agree to report.
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Issues Paper: Accounting for Income Taxes fo Stock Life Insurance Companies; Exposure Draft (American Institute of Certified Public Accountants), 1984, May 9
American Institute of Certified Public Accountants. Insurance Companies Committee
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Proposed audit and accounting guide : audits of entities with oil and gas producing activities ;Audits of entities with oil and gas producing activities; Exposure draft (American Institute of Certified Public Accountants), 1984, April 25
American Institute of Certified Public Accountants. Oil and Gas Committee
This proposed audit and accounting guide describes operations and accounting practices that are unique to the production of oil and gas as well as matters that are unique to the audit of financial statements of entities with oil and gas producing activities. Descriptions of accounting practices were limited to those that were essential to understanding typical audit objectives and procedures unique to the industry. Specifically, the proposed guide discusses income taxes, internal control, and audit considerations in the oil and gas producing industry. The proposed guide also discusses the business activities of the oil and gas producing industry— acquisition of mineral properties, exploration, drilling and development, oil and gas reserves, and production. The committee specifically asks for comments on the accounting for take-or-pay contracts as discussed in paragraph 280.
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Proposed guide on the use of real estate appraisal information ;Guide on the use of real estate appraisal information; Exposure draft (American Institute of Certified Public Accountants), 1984, July 31
American Institute of Certified Public Accountants. Real Estate Committee
This proposed guide provides guidance for auditors on --(1) the valuation concepts used in the accounting literature; (2) the valuation concepts used in the appraisal literature; (3) the methods used by appraisers to value real estate assets; (4) the selection and evaluation of a real estate appraiser; (5) the auditor's consideration of valuation data; (6) reporting considerations.
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Auditing life reinsurance; Statement of position 1984 November;
American Institute of Certified Public Accountants. Reinsurance Auditing and Accounting Task Force
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Proposed statement of position : auditing life reinsurance;Auditing life reinsurance; Exposure draft (American Institute of Certified Public Accountants), 1984, April 30
American Institute of Certified Public Accountants. Reinsurance Auditing and Accounting Task Force
This exposure draft provides guidance on certain significant aspects of internal accounting controls and auditing procedures for life reinsurance. For ceded reinsurance, this exposure draft provides guidance on internal accounting controls and related auditing procedures regarding the evaluation of the assuming company's financial responsibility and stability. For assumed reinsurance, the draft provides guidance on internal accounting controls and related auditing procedures regarding the assessment of the accuracy and reliability of data received from the ceding company. The draft also provides guidance on the auditor's test of selected reinsurance contracts, transactions, and related balances.
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Proposed audit guide : Audits of service-center-produced records ;Audits of service-center-produced records; Exposure draft (American Institute of Certified Public Accountants), 1984, Sept. 4
American Institute of Certified Public Accountants. Service-Center-Produced Records Task Force
This proposed audit guide provides guidance to independent auditors of organizations that use services provided by EDP service centers and to independent auditors who are engaged to report on certain aspects of the system of internal accounting control that relate to accounting systems processed by EDP service centers. This guide would replace and supersede the audit guide, Audits of Service-Center-Produced Records, issued in 1974. This guide represents a revision of the 1974 guide to incorporate the general guidance in Statement on Auditing Standards No. 44, Special-Purpose Reports on Internal Accounting Control at Service Organizations, and other auditing pronouncements issued since the guide was first published. This proposed audit guide discusses: 1. The effects of a client's use of an EDP service center on the auditor's study and evaluation of internal control. 2. Reporting on reviews of EDP service centers. 3. Using reports on internal control at EDP service centers.
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Proposed audit and accounting guide: Audits of state and local governmental units;Audits of state and local governmental units; Exposure draft (American Institute of Certified Public Accountants), 1984, Oct. 19
American Institute of Certified Public Accountants. State and Local Government Accounting Committee
This proposed audit and accounting guide would supersede the existing guide published in 1974. It was developed to reflect changes in accounting and auditing that have taken place since the original guide was issued. The proposed guide primarily codifies existing practice in auditing state and local governmental units. Significant areas discussed in the guide include: 1. Recognition and discussion of NCGA statements and other accounting literature issued since the 1974 guide. 2. Recognition that the auditor's report extends to the individual fund types or funds examined rather than the presentation taken as a whole. 3. Discussion of determining the principal auditor in situations in which funds or fund types are examined by different auditors and the appropriate reporting in those situations. 4. Discussion of general aspects of single audits of federally assisted programs. In addition, the proposed guide illustrates auditor's reports for many common situations and presents an inventory of internal accounting control procedures that could be applied by state and local governmental units.
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Proposed audit guide : Audits of federal financial assistance to state and local governmental units;Audits of federal financial assistance to state and local governmental units; Exposure draft (American Institute of Certified Public Accountants), 1984, Dec. 28
American Institute of Certified Public Accountants. Task Force on Single Audits of Federal Financial Assistance
This proposed audit guide provides guidance to Independent auditors when conducting financial and compliance audits of federal assistance programs awarded to state and local governmental units and Indian tribal governments as required by the Single Audit Act of 1984, Public Law 98-502. This guide and the Industry Audit Guide, Audits of State and Local Governmental Units, are applicable when an auditor is engaged to examine and report on the general purpose financial statements of governmental units that include federal financial assistance funds. Areas discussed in the proposed guide include the following: 1. Legal and regulatory requirements; 2. Findings and questioned costs; 3. Requirements applicable to subrecipients of federal financial assistance; 4. Initial-year audit and stub periods; 6. Responsibilities of cognizant agency; 6. Joint audit considerations. In addition, the proposed guide illustrates auditors' reports on financial statements and internal accounting control and auditors' comments on compliance with applicable laws and regulations.
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Accounting for asserted and unasserted medical malpractice claims of health care providers and related issues; Statement of position 87-1;
American Institute of Certified Public Accountants. Accounting Standards Division
This proposed statement provides guidance on applying generally accepted accounting principles in accounting for uninsured asserted and unasserted medical malpractice claims, captive insurance companies, retrospectively rated premiums, claims-made insurance policies, and trust funds of health care providers. The statement supplements the AICPA Hospital Audit guide. In general, the accrual of the estimated cost of uninsured asserted and unasserted medical malpractice claims should be based primarily on the health provider's own experience. A health care provider insured under a claims-made policy should accrue the cost of providing tail coverage at the end of the current period. A retrospectively rated insurance policy whose ultimate premium is primarily based on the health care provider's experience does not transfer risk. A wholly owned captive insurance subsidiary should accrue estimated claims of its parent based primarily on the parent's own experience. A trust fund established to pay malpractice claims, whether revocable or irrevocable, should be included in the financial statements of a health care provider.
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Reporting by banks of investment securities gains or losses : December 31, 1983 : amendment to AICPA industry audit guide Audits of banks; Statement of position 83-1;
American Institute of Certified Public Accountants. Accounting Standards Division
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Proposed Guide for Financial Forecasts and Projections; Exposure draft (American Institutde of Certified Public Accountants), 1983, Feb. 9
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed Guide for Prospective Financial Statements; Exposure draft (American Institute of Certified Public Accountants), 1983, May 16
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement on auditing standards : the effects of computer processing on the examination of financial statements ;Effects of computer processing on the examination of financial statements; Exposure draft (American Institute of Certified Public Accountants), 1983, Sept. 13
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement consists solely of amendments to existing Statements and would supersede Statement on Auditing Standards No. 3, The Effects of EDP on the Auditor's Study and Evaluation of Internal Control. The board believes that auditors consider the methods of data processing, including the use of computers, in essentially the same way, and the same time, they consider other significant factors that may affect their examination of financial statements. For example, in planning an examination, the auditor considers those aspects of a client's business that may affect the nature, timing, and extent of audit procedures, including the characteristics associated with the methods of data processing. By eliminating the inconsistent language presently in SAS No. 3, this proposed Statement also makes it clear that the auditor's obligation to perform a minimum study and evaluation of internal accounting control, as discussed in SAS No. 43, is the same for accounting systems that use a computer for processing accounting information as for manual accounting systems.
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Proposed statement on auditing standards : amendments to SAS no. 38, Letters for underwriters ;Amendments to SAS no. 38, Letters for underwriters;Letters for underwriters; Exposure draft (American Institute of Certified Public Accountants), 1983, Nov. 4
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This Statement consists of amendments to SAS No. 38, Letters for Underwriters. The amendments are in repsonse to recent changes in SEC financial reporting requirements and other developments in auditing and reporting practices. Twenty-five amendments are proposed.
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Proposed statement of position : reporting by banks of investment securities gains or losses;Reporting by banks of investment securities gains or losses; Exposure draft (American Institute of Certified Public Accountants), 1983, Apr. 22
American Institute of Certified Public Accountants. Banking Committee
This statement of position provides guidance for bank reporting of investment securities gains or losses in the income statement. The AICPA Banking Committee recommends the following: (1) Net investment securities gains or losses should be presentd on a separate line, on a pretax basis, in the "other income" section of a bank's income statement. If not material, they may be included in "other income." (2) Prior periods' interim and annual financial statements should be restated to conform with the one-step format. (3) If significant to an understanding of the revised reporting format, the tax effect of securities gains or losses should be disclosed in a note to the financial statements.
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Proposed audit and accounting guide : audits of credit unions ;Audits of credit unions; Exposure draft (American Institute of Certified Public Accountants), 1983, Oct. 21
American Institute of Certified Public Accountants. Credit Unions Committee
This proposed audit and accounting guide describes operations and accounting practices that are unique to the credit union industry as well as matters that are unique to the audit of a credit unions' financial statements. In addition, it describes some of the regulatory requirements of the industry. The proposed guide states that savings (share) accounts in a credit union should be classified as liabilities on the credit union's statement of financial condition. This presentation is consistent with the prevailing practice in mutually owned savings and loan associations and savings banks. Furthermore, it is consistent with the concept of liabilities expressed in FASB Statement of Accounting Concepts No. 3, Elements of Financial Statements of Business Enterprises. There are those who believe that savings (shares) should be classified as equity for the following reasons: (1) Shares are legally defined as equity; (2) Shares function as equity and represent ownership; (3) As with any corporate stock, shares are at risk. In summary, shares function as equity and those functions are unique to the concept of what a credit union is and what it represents in the world of financial institutions--a cooperative pooling of funds (equity) to be managed for the benefit of the member owners.
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Audits of Finance Companies, Draft 10/4/83
American Institute of Certified Public Accountants. Finance Companies Guide Special Committee
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Proposed guide for prospective financial statements;Guide for prospective financial statements; Exposure draft (American Institute of Certified Public Accountants), 1983, Sept. 20
American Institute of Certified Public Accountants. Financial Forecasts and Projections Task Force
This proposed guide provides guidance for management and other responsible parties regarding the preparation and presentation of prospective financial statements. Prospective financial statements are financial information about the future that impart certain minimum details about the results of operations and changes in financial position. The draft also provides guidance for accountants, WHETHER ENGAGED IN ACCOUNTING, AUDITING, TAX, OR MAS PRACTICES, and would require accountants associated with prospective financial statements to report on them. Accountants may be associated with prospective financial statements as a result of engagements conducted for the express purpose of compiling or reviewing such statements or in conjunction with assisting their clients in other ways, for example, in obtaining financing, deciding whether to lease or buy an asset, consummating a merger or acquisition, determining the tax consequences of future actions, or planning future operations. Specifically, the proposed guide would: 1. Expand the guidance on preparation and presentation of financial forecasts contained in MAS Guideline No. 3, Guidelines for Systems for the Preparation of Financial Forecasts, and SOP 75-4, Presentation and Disclosure of Financial Forecasts, to encompass financial projections and multiple projections, as well as financial forecasts. The guidance on a financial forecast in those documents would generally continue to apply. One change, however, would be to use the phrase "to the best of the responsible party's knowledge and belief, an entity's expected financial position. . ." in the definition of a financial forecast rather than the phrase used in the definition in SOP 75-4, "an estimate of the most probable financial position. . . ." This change would be made to make clear that a forecast should be management's best estimate of future results without implying an unrealistically precise standard (section 200). 2. Explain what types of prospective financial statements are appropriate for different circumstances (section 210). 3. Require the accountant who becomes associated with prospective financial statements, other than those for internal use only, to either compile or review them and report accordingly (section 500). 4 . Establish procedures and reporting for a compilation service on prospective financial statements (sections 600 to 620). 5. Extend the review service described in the 1980 Guide for a Review of a Financial Forecast to financial projections and multiple projections (sections 700 to 720). 6. Permit an accountant who becomes associated with internal-use-only prospective financial statements to perform a compilation, review or any of a spectrum of other services. The accountant would be required to issue a report indicating the restrictions on the distribution of the prospective financial statements and report, but the report wording would be flexible (section 800). 7. Prohibit an accountant from being associated with prospective financial statements that omit a summary of significant assumptions (section 500). The proposal, however, would permit assumptions to be disclosed in an informal matter, such as computer printed output (indicating data and relationships) from "electronic worksheets" and general purpose financial modeling software, as long as the responsible party believes that the disclosures and assumptions can be understood by users (sections 400 to 410). The proposed guide would not apply to "partial presentations" of prospective financial information, that is, presentations that do not meet the minimum presentation guidelines established in section 400.03 of the guide. Two flowcharts accompany this summary. One flowchart deals with the type of prospective financial statements the responsible party should prepare. The other flowchart deals with the accountant's services with respect to prospective financial statements.
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Proposed audit and accounting guide : Audits of casinos ;Audits of casinos; Exposure draft (American Institute of Certified Public Accountants), 1983, May 10
American Institute of Certified Public Accountants. Gaming Industry Special Committee
This proposed audit and accounting guide describes operations and accounting practices that are unique to the casino industry as well as matters that are unique to the audit of a casino's financial statements. In addition, it describes some of the regulatory requirements of the industry. Specifically, the proposed guide discusses the importance of effective internal accounting controls in casinos and notes that the auditor normally relies heavily on those controls to restrict his substantive testing because individual table game transactions (bets) are not recorded. Other significant matters covered by the proposed guide are— 1. The unique problems in testing cash and accounts receivable balances in casinos; 2. Illustrative financial statements; 3. The auditor's reports on internal accounting control for casinos operating in Nevada and New Jersey.
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Proposed interpretation of Rule 102, integrity and objectivity : proposed interpretation 102-1 : knowing misrepresentations in financial records and :Proposed interpretation of Rule 501, acts discreditable : proposed interpretation 501-4 : gross negligence in the preparation of financial statements or records;Proposed interpretation of Rule 501, acts discreditable : proposed interpretation 501-4 : gross negligence in the preparation of financial statements or records;Knowing misrepresentations in financial records;Gross negligence in the preparation of financial statements or records; Exposure draft (American Institute of Certified Public Accountants), 1983, Dec. 5
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
Rule 102--Integrity and Objectivity--provides that "a member shall not knowingly misrepresent facts." While the rule clearly applies to members who are found to have been directly involved in such misrepresentations, questions have been raised regarding the rule's application to mebmers who permit, or who direct others, including subordinates, to be involved in, what may be found to be misrepresentations of fact. The application of Rule 501--Acts Discreditable-- to a member who has been involved with the preparation of false and misleading financial statements has been unclear in the past. Such a member may state that he was unaware that false and misleading entries were included in the entity's financial records or statements and therefore should not be held responsible for such misleading entries. The committee has concluded that it is appropriate to put members on notice that they will be charged, if by virtue of their gross neglignece, they make or direct or permit another to make, false or misleadiang entries in financial records or statements.
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Proposed interpretations of Rule 503, Commissions proposed interpretation 503-2 : definition of the word "client" as used in Rule 503 and ; Proposed interpretation 503-3 : definition of "products or services of others" as used in Rule 503 ;Proposed interpretation 503-2 : definition of the word "client" as used in Rule 503;Proposed interpretation 503-3 : definition of "products or services of others" as used in Rule 503;Definition of the word "client" as used in Rule 503;Definition of "products or services of others" as used in Rule 503; Exposure draft (American Institute of Certified Public Accountants), 1983, Sept. 6
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
Proposed Interpretation 503-2, "Definition of the Word 'Client' as Used in Rule 503," narrows the term "client" to a person or entity that has retained a member or his firm engaged in the practice of public accounting to perform audit, accounting, review, compilation, tax, or management advisory services. Proposed Interpretation 503-3, "Definition of 'Products or Services of Others' as Used in Rule 503," limits the application of rule 503 to the referral of those products or services with respect to which CPAs can reasonably be expected by clients to have professional skill or knowledge as a result of education or experience as CPAs.
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Proposed statement of position : Financial reporting by health care entities of the proceeds of tax-exempt bonds and funds whose use is limited;Financial reporting by health care entities of the proceeds of tax-exempt bonds and funds whose use is limited; Exposure draft (American Institute of Certified Public Accountants), 1983, Oct. 14
American Institute of Certified Public Accountants. Subcommittee on Health Care Matters
The proposed statement provides guidance for health care entities (a) reporting long-term debt issued through a financing authority, (b) classifying funds whose use is limited as either general (unrestricted) or restricted, and (c) reporting related investment income and interest expense in the financial statements. Only assets restricted by a donor or by a grantor should be reported in the restricted funds section. Unrestricted funds should be called general funds and health care entities should report, as liabilities in the general funds section of the balance sheet, debt issued for their benefit and for repayment of which they are repsonsible when the debt is issued. Assets whose use is limited in substance under the terms of debt indentures, trust agreements, third-party reimbursement arrangements, or other similar arrangements should be reported in the general funds section as assets whose use is limited. Interest expense and investment income on borrowed funds held by a trustee (to the extent they are not capitalized) should be reported separately as operating expense or operating revenue, or alternatively, may be netted and reported as operating expense or operating revenue with the offsetting amount disclosed parenthetically.
