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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.
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Proposed statement on standards for accounting and review services : Computer-prepared interim financial statements;Computer-prepared interim financial statements; Exposure draft (American Institute of Certified Public Accountants), 1982, June 15
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed Statement would grant the accountant an exemption from the SSARS 1 requirement to comply, as a minimum, with the standards for a compilation engagement when, in specified circumstances, he submits computer-prepared interim financial statements to his client or others. The draft would require the use of a legend on each page of the statements, stating that the computer-prepared interim financial statements do not purport to reflect all appropriate adjustments and disclosures required by generally accepted accounting principles (or another comprehensive basis of accounting) and that they were not compiled, reviewed, or audited by an independent accountant.
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Accounting and financial reporting for personal financial statements : an amendment to AICPA industry audit guide, Audits of personal financial statements; Statement of position 82-1;
American Institute of Certified Public Accountants. Accounting Standards Division
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Proposed statement of position : accounting by agricultural producers and agricultural cooperatives;Accounting by agricultural producers and agricultural cooperatives; Exposure draft (American Institute of Certified Public Accountants), 1982, Sept. 10
American Institute of Certified Public Accountants. Accounting Standards Division
This proposed Statement presents accounting and reporting recommendations for the general-purpose financial statements of agricultural producers and agricultural cooperatives. The proposed statement recommends that growing crops of agricultural producers be reported at the lower of cost and market and that inventories of harvested crops and livestock held for sale also be reported at the lower of cost and market unless certain conditions are met. Permanent land development costs, such as clearing, initial leveling, terracing, and construction of earthen dams, would be capitalized but not depreciated. The proposed statement recommends that all direct and indirect costs of developing production animals be accumulated until the animals reach maturity. The proposed statement recommends that patrons account for deliveries of products to marketing cooperatives as sales if control over future economic benefits relating to the products has passed when the products are delivered to the cooperative. The proposed statement recommends that investments in cooperatives be reported at cost, including allocated equities and retains.
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Proposed statement of position : accounting for dollar repurchase, dollar reverse repurchase agreements by sellers-borrowers ;Accounting for dollar repurchase, dollar reverse repurchase agreements by sellers-borrowers; Exposure draft (American Institute of Certified Public Accountants), 1982, Apr. 14
American Institute of Certified Public Accountants. Accounting Standards Division
This Statement provides guidance on accounting for sales and purchases of or borrowing of funds through Government National Mortgage Association (GNMA) pass-through certificates and Federal Home Loan Mortgage Corporation (FHLMC) participation certificates under fixed coupon and yield maintenance dollar agreements. It also describes the accounting for rollovers and extensions of original agreements, and the repurchase of a principal amount different from the principal amount of the original agreement. The conclusions state that fixed coupon dollar agreements should be accounted for as collateralized borrowing arrangements, while yield maintenance dollar agreements should be accounted for as sales and purchases of securities.
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Statements of position of the Accounting Standards Division as of January 1, 1982
American Institute of Certified Public Accountants. Accounting Standards Division
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Position Paper: The Issuance of Compilation Reports by Accountants: The Need for Public Regulation and Professional Oversight
American Institute of Certified Public Accountants (AICPA)
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Proposed statement on auditing standards : consideration of omitted procedures after the report date ;Consideration of omitted procedures after the report date; Exposure draft (American Institute of Certified Public Accountants), 1982, Nov. 1
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement provides guidance on the considerations and procedures to be applied by an auditor who, subsequent to the date of his report on audited financial statements, concludes that one or more auditing procedures considered necessary in the circumstances were omitted from his examination of the financial statements. If the auditor concludes that the ommission materially affects his present ability to support his opinion, the proposed SAS would require that the auditor promptly undertake to apply the omitted procedure or alternative procedures that would provide a satisfactory basis for his opinion.
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Proposed statement on auditing standards : materiality and audit risk in conducting an audit ;Materiality and audit risk in conducting an audit; Exposure draft (American Institute of Certified Public Accountants), 1982, Dec. 6
American Institute of Certified Public Accountants. Auditing Standards Board
This Statement provides guidance on the auditor's consideration of materiality and audit risk when planning and performing an examination of financial statements in accordance with generally accepted auditing standards. The concepts of materiality and audit risk affect the application of generally accepted auditing standards, especially the standards of field work and reporting, and are inherent in the autitor's standard report. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements, while other matters are not important. Audit risk is the risk that the auditor may unknowingly fail to appropriately qualify his opinion on financial statements that are materially misstated.
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Proposed statement on auditing standards : omnibus statement on auditing standards ;Omnibus statement on auditing standards; Exposure draft (American Institute of Certified Public Accountants), 1982, Mar. 23
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement consists solely of amendments to the following existing statements: SAS No. 1, Section 150: Generally Accepted Auditing Standards; SAS NO. 1, Section 320: The Auditor's Study and Evaluation of Internal Control: SAS No. 1, Section 331, Receivables and Inventories; SAS No. 1, Section 420: Consistency of Application of Genearlly Accepted Accounting Principles; SAS No. 1, Section 901: Public Warehouses--Controls and Auditing Procedures for Goods Held; SAS No. 2, Paragraph 39: Reports on Audited financial Statements; SAS No. 5, Paragraphs 5 and 6: The Meaning of "Present Fairly in Conformity With Generally Accepted Accounting Principles" in the Indpendent Auditor's Reports; SAS No. 38, Paragraphs 47 and 51: Letters for Underwriters; SAS No. 39, Paragraph 46: Audit Sampling.
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Proposed statement on auditing standards : Timing of substantive tests ;Timing of substantive tests; Exposure draft (American Institute of Certified Public Accountants), 1982, Oct. 1
American Institute of Certified Public Accountants. Auditing Standards Board
Auditors often perform procedures such as observation of the taking of physical inventories or confirmation of accounts receivable as of a date that is before the balance-sheet date. This proposed Statement provides guidance on the factors auditors should consider before applying such substantive tests at interim dates.This proposed Statement also provides guidance on auditing procedures that should be applied to provide a reasonable basis for extending the audit conclusions at the interim date to the balance-sheet date.
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Proposed statement on auditing standards : related party transactions ;Related party transactions; Exposure draft (American Institute of Certified Public Accountants), 1982, Oct. 22
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement consists solely of editorial amendments to SAS NO. 6, Related Partly Transactions. The purpose of the amendments is to remove accounting guidance and disclosure standards that are now contained in FASB Statement of Financial Accounting Standards No. 57, Related Party Disclosures. The proposed SAS does not change the audit procedures that should be applied to identify related parties and to understand transactions with those parties, and thus it should not affect practice.
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Proposed Audit Guide for Credit Unions, May 19, 1982, Draft for Discussion
American Institute of Certified Public Accountants. Credit Unions Audit Guide Special Committee
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Accounting and reporting by defined contribution plans and employee health and welfare benefit plans : proposed accounting chapters, Audits of employee benefit plans ;Audits of employee benefit plans; Exposure draft (American Institute of Certified Public Accountants), 1982, Jan. 15
American Institute of Certified Public Accountants. Employee Benefit Plans and ERISA Committee
This exposure draft is the proposed accounting chapters of the audit guide, Audtis of Employee Benefit Plans. An exposure draft of the proposed auditing sections of that audit guide was issued for comments on on June 30, 1980. The accounting guidance in this exposure draft for defined contribution plans and employee health and welfare benefit plans is intended to be consistent with the principles in FASB Statement No. 35 to the extent they are relevant. This exposure draft describes the form of financial statements, provides for the reporting of plan investments at fair value, and describes additional financial statement disclosures. The chapter on employee health and welfare benefit plans replaces the accounting and reporting principles and practices specified in the 1972 guide, Audits of Employee Health and Welfare Benefit Funds. The chapter does not, however, significantly change the 1972 guide regarding the accounting for plan liabilities.
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Proposed statement of position : accountant's report on a review of a financial forecast contained in filings under federal securities statutes ;Accountant's report on a review of a financial forecast contained in filings under federal securities statutes; Exposure draft (American Institute of Certified Public Accountants), 1982, Feb. 10
American Institute of Certified Public Accountants. Financial Forecasts and Projections Task Force
This proposed Statement would supplement the Guide for a Review of a Financial Forecast. The Proposed SOP provides guidance to the accountant when his report on a review of a financial forecast is included in a registration statement filed with the SEC under the Securities Act of 1933. The proposed SOP describes the procedures an accountant should undertake between the date of his review report and the effective date of the registration statement when the report is not required to be updated under the terms of his engagement. These procedures, which are limited to reading certain documents and making certain inquiries, provide a reasonable basis for the accountant to consent to the use of his report without constituting an update of that report.
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Proposed statement of position : report on a financial feasibility study ;Report on a financial feasibility study; Exposure draft (American Institute of Certified Public Accountants), 1982, Feb. 15
American Institute of Certified Public Accountants. Financial Forecasts and Projections Task Force
This proposed Statement of Position illustrates an expanded form of report that can be used for financial feasibility studies when the accountant has applied procedures that exceed those that would pertain solely to a review of a financial forecast. The report includes a description of the scope of the feasibility study and a statement of conclusions that result from the study.
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Report on a financial feasibility study, Supplements the Guide for a Review of a Financial Forecast, October 1982; Statement of position 1982, Oct; Statement of position 1982, Oct
American Institute of Certified Public Accountants. Financial Forecasts and Projections Task Force
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Proposed statements on standards for management advisory services : MAS engagements and MAS consultations ;MAS engagements and MAS consultations; Exposure draft (American Institute of Certified Public Accountants), 1982, Mar. 30
American Institute of Certified Public Accountants. Management Advisory Services Executive Committee
The proposed statement on MAS (Management Advisory Services) engagements provides guidance on the application of the MAS standards on professional competence, planning and supervision, sufficient relevant data, the role of the practitioner, the understanding with the client, client benefit, and communication of results. The proposed statement on MAS consultations proivides guidance on the application of the general standards on due professional care, planning and supervision, and sufficient relevant data. It proposes that the four technical standards established for MAS engagements in SSMAS no. 1 be made applicable to MAS consultations.
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Proposed guide : personal financial statements : compilation, review, and audit ;Personal financial statements : compilation, review, and audit; Exposure draft (American Institute of Certified Public Accountants), 1982, Nov. 1
American Institute of Certified Public Accountants. Personal Financial Statements Task Force
This statement provides guidance on the scope of work and form of report for an audit, review, or compilation of personal financial statements prepared in conformity with the accounting provisions of Statement of Position 82-1, Accounting and Financial Reporting for Personal Financial Statements. The guide first discusses matters that are common to all personal financial statement engagements. The guide then discusses the application of current professional standards to engagements to compile, review , or audit personal financial statements that present assets at their estimated current values and liabilities at their estimated current amounts. Finally, the guide discusses reporting on personal financial statements, and provides numerous compilation, review, and audit report illustrations.
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Proposed interpretation of 101-9 : the 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; Exposure draft (American Institute of Certified Public Accountants), 1982, Aug. 11
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
This interpretation defines certain terms used in rule 101 and, in doing so, also explains how independence may be impaired through certain family relationships.
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Proposed interpretation of quality control standards : documentation of compliance with a system of quality control;Documentation of compliance with a system of quality control; Exposure draft (American Institute of Certified Public Accountants), 1982, Feb. 8
American Institute of Certified Public Accountants. Quality Control Standards Committee
The proposed interpretation is to advise CPA firms that documentation would ordinarily be required to demonstrate a firms's compliance with its quality control policies and procedures.
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Auditing property and liability reinsurance; Statement of position 1982 October;
American Institute of Certified Public Accountants. Reinsurance Auditing and Accounting Task Force
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Proposed auditing statement of position : auditing property and liability reinsurance ;Auditing property and liability reinsurance; Exposure draft (American Institute of Certified Public Accountants), 1982, Mar. 15
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 procedrues for property and liability reinsurance, including accident and health reinsurance. For ceded reinsurance, this 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 tests of selected reinsurance contracts, transactions, and related balances and guidance on internal accounting controls and related auditing considerations for reinsurance transacted through an intermediary or broker.
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Proposed audit guide : audit sampling;Audit sampling; Exposure draft (American Institute of Certified Public Accountants), 1982, Mar. 1
American Institute of Certified Public Accountants. Statistical Sampling Subcommittee
This exposure draft is a proposed Audit Guide entitled Audit Sampling. The proposed guide is important to all CPAs who do audits. It provides guidance to the auditor for implementing Statement on Auditing Standards no. 39, Audit Sampling. SAS no. 39 applies to all audit sampling — both statistical and nonstatistical. This proposed guide provides guidance to assist auditors using either approach in applying SAS no. 39. The guide is organized so that essentially all the guidance relating solely to statistical sampling is located beginning with Chapter 3, section 3. As a result, if an auditor is using this guide to assist him in applying nonstatistical sampling, the auditor would ordinarily follow the guidance in Chapters 1, 2, and 3 (sections 1 and 2). The audit guide is organized as follows: 1. The introduction to the guide describes the scope of the audit guide and provides guidance on the type of audit procedures covered by SAS no. 39 and this guide. 2. Chapter 1 provides an overview of the relationship of audit sampling to the audit process. 3. Chapter 2 provides guidance on the use of audit sampling for tests of compliance with prescribed internal accounting control procedures. This guidance applies to both nonstatistical and statistical sampling except where noted. 4. Chapter 3 provides guidance on the use of audit sampling for substantive tests of details. Chapter 3 is divided into four sections. Section one provides general guidance that applies to both nonstatistical and statistical sampling. Section 2 provides guidance for nonstatistical sampling applications for substantive tests. Two types of statistical sampling approaches for substantive tests are described in sections 3 and 4. Sections 2, 3, and 4 each include a case study illustrating the application of the guidance in the respective section. 5. The guide includes several appendices. Appendices A through E are primarily useful in applying certain statistical sampling approaches. Appendix F provides further guidance on the use of the risk model included in the appendix to SAS no. 39. Appendices G and H are a glossary and selected bibliography of further readings, respectively. Neither SAS no. 39 nor this guide requires the auditor using nonstatistical sampling to compare the sample size for the nonstatistical sampling application to a corresponding sample size calculated using statistical theory. However, the guide provides several quantitative illustrations of sample sizes based on statistical theory that should be helpful to an auditor applying professional judgment and experience in considering the effect of various planning considerations on sample size.
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Proposed audit guide : audits of brokers and dealers in securities ;Audits of brokers and dealers in securities; Exposure draft (American Institute of Certified Public Accountants), 1982, Dec. 27
American Institute of Certified Public Accountants. Stockbrokerage Auditing Subcommittee
This proposed revised audit guide on brokers and dealers in securities was undertaken to reflect changes in industry practices and regulatory requirements that have occurred in recent years. The proposed guide describes operations, accounting practices and regulatory requirements unique to the brokerage industry, discusses unique aspects of the audit and illustrates the form and content of the financial statements and auditor's report. Also, the draft recommends new accounting and reporting practices relating to the valuation of future and forward transactions and unlisted options and to the presentation of subordinated debt and shareholders' equity in the financial statements. Significant changes in the guide are: 1. Discussion of the SEC's adoption of the FOCUS Report, which replaced the "Answers to Financial Questionnaire" with GAAP financial statements. 2. Prohibition against the combination of subordinated debt and shareholders' equity in the statement of financial condition. 3. An explanation of how to meet the SEC's requirements for a review of and report on internal accounting control and also meet the standards of SAS No. 30, "Reporting on Internal Accounting Control," and presentation of illustrative reports. 4. A new chapter discussing government and money market instruments, and a recommendation that all future and forward transactions should be marked-to-market currently, with the effect recorded in current results of operations. Also, the guide states that the gross amounts of future and forward commitments should be disclosed in the notes to financial statements rather than recording the future assets and liabilities. 5. Expanded discussion of listed options and a recommendation that unlisted options should be valued at fair value, as listed options currently are valued. 6. A discussion of the Commodity Futures Trading Commission in the chapter on commodities. 7. Presentation of illustrative financial statements and schedules that conform to the FOCUS reporting requirements and other SEC rules. 8. Illustrative auditors' reports on the financial statements and schedules that conform to the reporting guidance in SAS No. 29, "Reporting on Information Accompanying the Basic Financial Statements in Auditor-Submitted Documents." 9. Illustrative auditor's report qualified for a scope limitation, appropriate if the financial statements include securities valued by management and the auditor believes that, although the valuation procedures appear reasonable and the underlying documentation appropriate, the determination of fair value involves subjective judgment that is not susceptible to substantiation by auditing procedures.
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Accounting guidelines for the computer services industry; Exposure draft (American Institute of Certified Public Accountants), 1982, April 28
Association of Data Processing Service Organizations
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Proposed statement on standards for accounting and review services : communications between predecessor and successor accountants;Communications between predecessor and successor accountants; Exposure draft (American Institute of Certified Public Accountants), 1981, Jan. 23
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed statement amends SSARS 2, by deleting footnote 8 in paragraph 16 of that statement. This proposed statement would not change the basic position of SSARS 2 that a successor accountant is not required to communicate with a predecessor in connection with acceptance of an engagement to compile or review the financial statements of a nonpublic entity. This proposed statement requires the predecessor accountant to respond promptly and fully to such inquiries in ordinary circumstances.
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Proposed statement on standards for accounting and review services : reporting on compiled financial statements ;Reporting on compiled financial statements; Exposure draft (American Institute of Certified Public Accountants), 1981, Nov. 30
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed Statement amends the reporting standards for a compilation of financial statements by requiring that the accountant's report indicate that his compilation has been performed in accordance with standards established by the American Institute of Certified Public Accountants.
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Accounting for performance of construction-type and certain production-type contracts : July 15, 1981 : proposal to the Financial Accounting Standards Board; Statement of position 81-1;
American Institute of Certified Public Accountants. Accounting Standards Division
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Reporting practices concerning hospital-related organizations : August 1, 1981 : proposal to the Financial Accounting Standards Board to amend AICPA Industry audit guide, "Hospital audit guide."; Statement of position 81-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statements of position of the Accounting Standards Division as of January 1, 1981
American Institute of Certified Public Accountants. Accounting Standards Division
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Proposed statement on auditing standards : reporting on condensed financial statements and selected financial data ;Reporting on condensed financial statements and selected financial data; Exposure draft (American Institute of Certified Public Accountants), 1981, Sept. 1
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement provides reporting guidance on (1) condensed financial statements derived from audited financial statements (such as the condensed year-end balance sheet that must be included in the quarterly report filed on SEC Form 10-Q); (2) selected financial data derived from audited financial statements that are required in certain SEC filings according to regulation S-K.
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Proposed statement on auditing standards : Special-purpose reports for use by other auditors ;Special-purpose reports for use by other auditors; Exposure draft (American Institute of Certified Public Accountants), 1981, Oct. 15
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement provides guidance on how, under certain crcumstances, one independent auditor might use a special-purpose report of another independent auditor because of its revlevance to his own examination and provides guidance on the preparation of such reports. The proposed SAS would require an independent auditor to determine whether significant transactions are processed or significant assets or liabilities are handled by an organization that provides accounting or custodial services to a client and to consider the division of control functions between the client organization and the service organization.
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Proposed statement on auditing standards : supplementary mineral reserve information ;Supplementary mineral reserve information; Exposure draft (American Institute of Certified Public Accountants), 1981, July 30
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement provides additional guidance in applying SAS No. 27, Supplementary Information Required by the Financial Accounting Standards Board to the mineral reserve information required by FASB Statement No. 39, Financial Reporting and Changing Prices: Specialized Assets--Mining and Oil and Gas. The disclosure of supplementary mineral reserve information is required of companies that are subject to the requirements of FASB Statement No. 33, Financial Reporting and Changing Prices.
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Proposed statement on auditing standards : working papers ;Working papers; Exposure draft (American Institute of Certified Public Accountants), 1981, Apr. 27
American Institute of Certified Public Accountants. Auditing Standards Board
This proposed Statement supersedes SAS No. 1, section 338, "Working Papers." The revision of section 338 was undertaken primarily because there is some confusion in the profession as to whether the section requires the preparation of working papers. The main purpose of the proposed SAS is to make it clear that working papers are required.
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Proposed audit guide : audits of banks;Audits of banks; Exposure draft (American Institute of Certified Public Accountants), 1981, Nov. 16
American Institute of Certified Public Accountants. Banking Committee
This guide has been prepared to assist the independent CPA in examining and reporting on financial statements of commercial banks, savings banks and bank holding companies. Also, it should help officers and directors of banks and other interested persons understand the nature and scope of audits of banks by independent CPAs. In the last decade, many changes have occurred in the banking industry. Bank supervisory authorities have taken substantial steps to improve reporting by banks. Bank holding companies have become a major factor in the industry, and the range of services offered by banking institutions has expanded. The supervisory authorities have expressed increased interest in reliance on examinations by independent CPAs. Since 1971, the Securities and Exchange Commission (SEC) has required audits of the financial statements of banks included in filings with the SEC. Because of these changes, the American Institute of Certified Public Accountants (AICPA) Committee on Banking (Committee) has revised the banking industry audit guide, Audits of Banks, originally published in 1968 and supplemented in 1969. This guide is a complete revision of that guide. This guide emphasizes aspects of accounting and auditing unique to the banking industry. It reflects the presumption that the CPA understands accounting and auditing common to business enterprises in general. The discussions of auditing present typical audit situations in banks, including the CPA's review of internal accounting controls of banks. However, the discussions do not necessarily cover all audit situations a CPA might encounter in banks. Finally, references to the statements on auditing standards of the AICPA and the authoritative accounting pronouncements of the Financial Accounting Standards Board (FASB) and its predecessor organizations, including the Accounting Principles Board (APB) are intended to include the specific pronouncements as well as all subsequent amendments to them effective as of the date of this guide. The CPA should be familiar with any auditing or accounting interpretations issued after the date of this guide.
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Proposed statement on standards for management advisory services : definitions and standards for MAS practice ;Definitions and standards for MAS practice; Exposure draft (American Institute of Certified Public Accountants), 1981, Mar. 18
American Institute of Certified Public Accountants. Management Advisory Services Executive Committee
This exposure draft is the first of a new series entitled Statements on Standards for Management Advisory Services that will be enforceable under the AICPA Rules of Conduct. The proposed statement identifies nine fundamental standards for MAS practice.