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University education for management consulting; Exposure draft (American Institute of Certified Public Accountants), 1977, April 23
American Institute of Certified Public Accountants. MAS University Education Task Force
While the AICPA is concerned with management consulting as performed by CPA firms, the suggested learning objectives described in this document generally pertain to the application of consulting skills in many different environments, including business and government as well as consulting organizations. Clearly, assimilating the suggested learning objectives into programs offered to students majoring in accounting, business, engineering, science, and other subjects would tend to improve the overall management, analytical, and communications skills of graduates. This document is intended for both educators and management consulting practitioners. It should help them to focus on what can be accomplished and encourage them to work together to achieve specific objectives.
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Accounting for costs to sell and rent, and initial rental operations of, real estate projects; Exposure draft (American Institute of Certified Public Accountants), 1977, Aug. 1
American Institute of Certified Public Accountants. Real Estate Accounting Committee
The Accounting Standards Division has noted that diverse practices are followed in accounting for both costs to sell and costs to rent real estate projects. It has also noted that diverse practices are followed in accounting for costs and revenues during the initial operating period of a rental project, before occupancy stabilizes (sometimes referred to as the "rent-up" period). The Division believes that narrowing the range of those practices is desirable. This Statement of Position sets forth the Division's recommendations on accounting for costs to sell and costs to rent real estate projects and for initial rental operations of such projects.
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Guide to implement the voluntary quality control review program for CPA firms; Performing and reporting on quality control compliance reviews; Discussion draft (American Institute of Certified Public Accountants), 1977, October 28
American Institute of Certified Public Accountants. Special Committee on Proposed Standards for Quality Control Policies and Procedures
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Proposed new rule 502 passed by AICPA Council 9/17/77 (awaiting mail vote of AICPA membership); Exposure draft (American Institute of Certified Public Accountants), 1977, Sept. 28
American Institute of Certified Public Accountants. Task Force on Advertising
It was apparent to the Task Force that its initial task was to evaluate and attempt to perceive the public interest and the changes that may have occurred in it. This included consideration of the positions and statements of various consumer groups as they could be ascertained by the Task Force. In the course of its deliberations the Task Force considered actions such as that by the Federal Trade Commission against the American Medical Association, the Justice Department against the American Bar Association and investigation of the AICPA by both these regulatory bodies. It also considered the Supreme Court decision in the Goldfarb and later Bates cases, a proposed model code of ethics developed by the National Association of State Boards of Accountancy and recent changes that had been made in existing regulations of various state boards of accountancy. The Task Force considered and rejected many of the traditional arguments against advertising. It believes that the competence and quality of professional accounting services are not necessarily enhanced by the prohibition against advertising. The Task Force concluded that the public has a paramount interest in a free flow of information concerning the availability of accounting services and that the flow of information should only be curtailed when there are counterbalancing public interests involved. For example, if certain information would tend to deceive or mislead the public, it should be prohibited. The Task Force concluded that the type of media used in advertising was of secondary importance. The Task Force concluded that the paramount need of the public is for information and that in this respect the public interest has changed since the AICPA rule on advertising was originally adopted. The Task Force believes the need for information is genuine and that the earlier need to shield the public in this regard is now of less importance. There was concern by the Task Force that the credibility and dignity of the CPA profession could be diminished by advertising. Consideration was given to whether removal of restrictions on advertising would erode the CPA's independence in the eyes of the public. On balance, the Task Force believes that the credibility and dignity of the profession would not be better served by retaining restrictions against advertising. In sum, the Task Force believes that advertising which is truthful and not misleading or deceptive should be permitted. It believes that false, misleading or deceptive advertising by members should be prohibited. Violations of these rules should be investigated and punished where they occur.
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Valuation of certain real estate and loans and receivables collateralized by real estate; Exposure draft (American Institute of Certified Public Accountants), 1976, May 25
American Institute of Certified Public Accountants. Accounting Standards Committee on Real Estate Accounting
Statement of Position No. 75-2, issued on June 27, 1975, presents recommendations of the Accounting Standards Division on Accounting Practices of Real Estate Investment Trusts. The Committee on Real Estate Accounting has considered whether the conclusions in that Statement with respect to the valuation of real estate should be recommended to the Financial Accounting Standards Board (FASB) as applicable to companies that are not REITs; the accompanying exposure draft presents the Committee's views on that and related issues.
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Accounting for origination costs and loan and commitment fees in the mortgage banking industry : recommendation to the Financial Accounting Standards Board; Statement of position 76-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices for certain employee stock ownership plans : recommendation to the Financial Accounting Standards Board; Statement of position 76-3;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices in the record and music industry : recommendation to the Financial Accounting Standards Board. August 25, 1976 : Recommendation to the Financial Accounting Standards Board; Statement of position 76-1;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial accounting and reporting by investment companies; Exposure draft (American Institute of Certified Public Accountants), 1976, Oct. 8
American Institute of Certified Public Accountants. Accounting Standards Division
This proposed amendment presents the Division's views on the following matters: • Money market funds (an addition to the Guide) • Put and call options (supersedes discussion in the Guide) • Organization expenses (an addition to the Guide) • Amortization of deferred costs (an addition to the Guide) • Payment of fees for research (an addition to the Guide) • Valuation of short-term investments (an amendment to the Guide)
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Accounting practices for certain employee stock ownership plans; Exposure draft (American Institute of Certified Public Accountants), 1976, Sept. 30
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
The Employee Retirement Income Security Act of 1974 describes an Employee Stock Ownership Plan (ESOP) as a qualified stock bonus plan, or a combination stock bonus and money purchase pension plan, designed to invest primarily in "qualifying employer securities." Qualifying employer securities include the employer's stock and its other marketable obligations. The essential differences between an ESOP and other qualified stock bonus plans are that (a) an ESOP is permitted, in certain circumstances, to employ the principles of leverage in the acquisition of employer securities and (b) the employer may be permitted, under the Tax Reduction Act of 1975, to increase his maximum allowable investment tax credit by an additional 1% if that amount is contributed to an ESOP. Several accounting and reporting issues have arisen with respect to those ESOPs that borrow funds from a bank or other lender to acquire shares of stock in the employer company. These are being dealt with in practice in different ways. This Statement of Position has been issued because the Division believes it is desirable to narrow the range of alternative accounting practices in this area.
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Accounting for origination costs and loan fees in the mortgage banking industry; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 6
American Institute of Certified Public Accountants. Accounting Standards Task Force on Mortgage Bankers
The Accounting Standards Division of the American Institute of Certified Public Accountants issued a Statement of Position on Accounting Practices in the Mortgage Banking Industry on December 30, 1974 (Statement of Position No. 74-12) outlining the Division's position on mortgage banker accounting for inventory of permanent mortgage loans held for sale and certain other accounting matters. The Division has also noted that mortgage bankers use a variety of practices in accounting for loan origination costs and loan fees and believes that it is desirable to narrow the range of those practices. The Division's recommendations with respect to accounting for origination costs and loan fees, as set forth herein, are applicable to financial statements of mortgage bankers that are intended to present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles.
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Audits of brokers and dealers in securities; Statement of position 1976 December;
American Institute of Certified Public Accountants. Auditing Standards Division
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Proposed statement on auditing standards : illegal acts by clients;Illegal acts by clients; Exposure draft (American Institute of Certified Public Accountants), 1976, April 30
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement does not contain specific procedures to detect an illegal act by a client. An examination in accordance with generally accepted auditing standards cannot be expected to provide assurance that illegal acts will be detected. This limitation is considered in another proposed Statement entitled "The Independent Auditor's Responsibility for the Detection of Errors and Irregularities" also issued for comment today. The proposed Statement does specify that the auditor should be aware of the possibility that illegal acts may have occurred that may have a material effect on the financial statements. It further requires that should an auditor become aware of a possible illegal act he should perform additional procedures to investigate the matter and, if necessary, consult with legal counsel. The exposure draft also offers practical suggestions in connection with illegal acts that do not appear to have a material effect on the financial statements.
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Proposed statement on auditing standards : Public reporting on a limited review of interim financial information;Public reporting on a limited review of interim financial information; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 6
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This is an exposure draft of a Statement on Auditing Standards on public reporting on limited reviews of interim financial information. The exposure period is unavoidably short so that the Committee can furnish guidance to CPAs who may be asked to report on limited reviews early in 1976. We recognize that this is traditionally a very busy time for CPAs but seek to assure that this exposure draft nevertheless will receive appropriate attention. In developing this exposure draft the Auditing Standards Executive Committee considered the provisions of the SEC's Accounting Series Release (ASR) No. 177, which permits a registrant to disclose in quarterly financial filings whether a limited review of interim data was performed by a CPA. A registrant that makes the disclosure must also state whether adjustments and disclosures proposed by the CPA as a result of the limited review were reflected in the related financial information. Most of the members of the Executive Committee believe that clients making these representations to the SEC cannot be prohibited from making the same representations in reports to stockholders. Further, clients that are not registrants may choose to have certain data subjected to a limited review on a timely basis. Consequently, it is likely that some companies will include representations concerning limited reviews of financial information in quarterly stockholders' reports beginning with the first calendar quarter of 1976. With that background, the key decision reflected in this draft is that the public is better served if a CPA's report is included with the data subjected to a limited review than if a client makes a representation about the results of a CPA's review. That decision will result in a significant change from current practice concerning reports on unaudited financial information. The draft provides for a form of report that includes an expression of limited assurance based on the performance of specified procedures established in Statement on Auditing Standards No. 10, "Limited Review of Interim Financial Information." This report is based on the concept that users will be able to distinguish among various types of assurance providing the limits of the assurance are disclosed in the CPA's report and the underlying procedures meet professional standards.
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Proposed statement on auditing standards : Reports on comparative financial statements;Reports on comparative financial statements; Exposure draft (American Institute of Certified Public Accountants), 1976, July 30
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement provides guidance on reporting on comparative financial statements, whether audited or unaudited. It requires the auditor to update his opinion on prior-period audited financial statements presented on a comparative basis with those of the current period and specifies a standard report on comparative financial statements for two annual periods. The exposure draft also offers guidance on reports with differing opinions, reports with a revision of a previous opinion, and reports when a predecessor auditor has examined the prior-period financial statements.
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Proposed statement on auditing standards : Required communication of material weaknesses in internal accounting ;Required communication of material weaknesses in internal accounting control; Exposure draft (American Institute of Certified Public Accountants), 1976, Dec. 31
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This exposure draft proposes a new requirement that an auditor advise his client's senior management and the board of directors or its audit committee of material weaknesses in internal accounting control that come to his attention incident to his examination of the client's financial statements. Such required communication will aid management in discharging its responsibility to establish and maintain a system of internal accounting control by providing them with additional knowledge of material weaknesses in such control. The importance of establishing and maintaining an effective system of internal accounting controls has recently been the subject of increased public discussion. One suggestion is that a periodic auditor's report on the adequacy of a public company's system of internal accounting control could aid investors and others who rely on published financial information. This proposed standard does not address the expectations implicit in that suggestion.
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Proposed statement on auditing standards : Special reports;Special reports; Exposure draft (American Institute of Certified Public Accountants), 1976, March 1
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This exposure draft, if adopted, would change present practice by: 1. Requiring that the first standard of reporting, as well as all other generally accepted auditing standards, be met when an auditor examines and reports on financial statements prepared in accordance with a comprehensive basis of accounting other than generally accepted accounting principles. 2. Permitting an accountant to issue a report providing negative assurance relating to the results of agreed-upon procedures on one or more specified accounts or items, and compliance with contractual agreements or regulatory requirements.
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Proposed statement on auditing standards : The independent auditor's responsibility for the detection of errors or irregularities;Independent auditor's responsibility for the detection of errors or irregularities; Exposure draft (American Institute of Certified Public Accountants), 1976, April 30
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement clarifies the auditor's responsibility for detecting errors or irregularities in an examination of financial statements in accordance with generally accepted auditing standards. It specifies that an independent auditor should plan his examination to search for errors or irregularities that would have a material effect on the financial statements. The proposed Statement also recognizes that an audit provides reasonable, but not absolute, assurance that financial statements are not materially affected by errors or irregularities. The concept of reasonable assurance is discussed and definitions of the terms errors and irregularities are given.
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Proposed statement on auditing standards: Unaudited replacement cost information;Unaudited replacement cost information; Exposure draft (American Institute of Certified Public Accountants), 1976, Dec. 15
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement responds to the urging of the SEC in Accounting Series Release (ASR) No. 190 that the Auditing Standards Executive Committee develop appropriate standards for the involvement of the auditor with unaudited replacement cost information presented in audited financial statements in accordance with SEC Regulation S-X. This proposed Statement recommends that the auditor perform limited inquiry procedures to provide the auditor with an understanding as to whether (a) the replacement cost information is prepared and presented in conformity with Regulation S-X of the Commission and (b) disclosures regarding the replacement cost information are consistent with management's responses to the auditor's inquiries. The proposed Statement also provides guidance as to the auditor's reporting responsibilities in connection with unaudited replacement cost information.
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Proposed plan for voluntary quality control review program for CPA firms with SEC practices; Discussion draft (American Institute of Certified Public Accountants), 1976, February 19
American Institute of Certified Public Accountants. Committee on Self-Regulation
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Auditor's study and evaluation of internal control in EDP systems; Exposure draft (American Institute of Certified Public Accountants), 1976, March
American Institute of Certified Public Accountants. Computer Auditing Subcommittee
The basic objectives of this audit guide are to: 1. Describe and recommend procedures to be performed in a study and evaluation of EDP (Electronic Data Processing) accounting controls in an audit. 2. Assist the auditor in meeting the requirements of Statement on Auditing Standards No. 3, The Effects of EDP on the Auditor's Study and Evaluation of Internal Control, through illustration and description of various control techniques and procedures. 3. Outline some typical tests of compliance that can be applied to EDP accounting controls. 4. Discuss, in general terms, the effect that a weakness in EDP accounting control might have on the scope of the auditor's examination.
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Guidelines for participation in government audit engagements to evaluate economy, efficiency and program results; Exposure draft (American Institute of Certified Public Accountants), 1976, May
American Institute of Certified Public Accountants. MAS Task Force on Evaluation of Efficiency and Program Results
The issuance in 1972 of the United States Accounting Office's Standards for the Audits of Governmental Organizations, Programs, Activities and Functions significantly expanded the meaning of the word audit when it is to be applied to governmental and government funded activities. As a result, the CPA engaged to perform a governmental audit may now be expected to do far more than in the past. In addition to the traditional examination of financial statements in accordance with generally accepted auditing standards, expanded governmental audits may be concerned with the following questions: 1. Is the entity managing or utilizing its resources in an economical and efficient manner? 2. Is the entity achieving the desired results or benefits? 3. Are the entity's operations in compliance with applicable laws and regulations beyond those relevant to a financial audit? The additional audit objectives designated by the GAO may pose extensive challenges for the practitioner who chooses to conduct expanded governmental audits. He will be called upon to use not only his financial auditing and accounting skills, but a variety of management advisory services skills as well. He will, in fact, be conducting audits which will require judgments based on expertise which may not be available within his staff and which are normally associated with other professional disciplines, such as engineering, medicine, social sciences, and public administration. The CPA undertaking such engagements, therefore, should be aware of the potential problems associated with these additional requirements and should understand how existing AICPA standards apply to expanded scope audits. The purpose of this document is to guide the CPA considering participation in an audit engagement for any entity at the federal, state or local levels to which the GAO audit standards apply. The GAO's document does contain the basic information about the audit standards, but certain ramifications for public accounting firms are not always clear. The standards were written for governmental audit agencies as well as public accounting firms.
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Accounting practices in the recorded and printed music industry; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 4
Institute of Certified Public Accountants. Accounting Standards Task Force on Entertainment Companies
TABLE OF CONTENTS GENERAL BACKGROUND: Record Manufacturing— General description The record master Marketing Recording artist contracts Music Publishing-General description Royalties REVENUE RECOGNITION: Industry Practice The Division's Conclusion INVENTORY VALUATION: Industry Practice The Division's Conclusion COMPENSATION OF ARTISTS: Industry Practice The Division's Conclusion COSTS OF RECORD MASTERS: Industry Practice The Division's Conclusion LICENSOR INCOME/LICENSEE COST: Industry Practice The Division's Conclusion INTANGIBLE ASSETS ACQUIRED IN A BUSINESS COMBINATION MUSIC PUBLISHERS
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Accounting practices in the broadcasting industry : recommendation to Financial Accounting Standards Board; Statement of position 75-5;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices of real estate investment trusts : recommendation to Financial Accounting Standards Board; Statement of position 75-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Presentation and disclosure of financial forecasts; Statement of position 75-4;
American Institute of Certified Public Accountants. Accounting Standards Division
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Questions concerning profit recognition on sales of real estate : proposal to to Financial Accounting Standards Board to clarify AICPA Industry Accounting Guide on Accounting for Profit Recognition on Sales of Real Estate; Statement of position 75-6;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on revenue recognition when right of return exists;Revenue recognition when right of return exists; Statement of position 75-1; Statement of position 75-1
American Institute of Certified Public Accountants. Accounting Standards Division, issuing body
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Proposed statement on auditing standards : Inquiry of a client's lawyer concerning litigation, claims, and assessments;Inquiry of a client's lawyer concerning litigation, claims, and assessments; Exposure draft (American Institute of Certified Public Accountants), 1975, Oct. 24
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This Statement provides guidance on the procedures an independent auditor should consider when he is performing an examination in accordance with generally accepted auditing standards to identify litigation, claims, and assessments and to satisfy himself as to the financial accounting and reporting for such matters.
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Proposed statement on auditing standards : related party transactions;Related party transactions; Exposure draft (American Institute of Certified Public Accountants), 1975, March 15
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement provides guidance on procedures that should be considered to attempt to determine the existence of related parties and to examine identified related party transactions. It also provides guidance on considerations that might affect the auditor's evaluation of the adequacy of disclosure of related party transactions.
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Accrual of revenues and expenditures by state and local governmental units : proposal to Financial Accounting Standards Board to amend AICPA Industry audit guide on audits of state and local governmental units; Statement of position 75-3;
American Institute of Certified Public Accountants. Subcommittee on State and Local Governmental Auditing
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Accounting for foreign currency translation, May 17, 1974 : responses to issues raised in FASB discussion memorandum, Feb. 21, 1974 (FASB file reference 1005); Statement of position 74-05;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for future losses : Responses to issues raised in FASB Discussion Memorandum, March 13, 1974 (FASB file reference 1006), April 25, 1974); Statement of position 74-04;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for leases; responses to issues raised in FASB Discussion memorandum, July 2, 1974 (FASB file reference 1002); Statement of position 74-10;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for research and development and similar costs : responses to issues raised in FASB Discussion Memorandum, December 28, 1974 (FASB file reference 1007), February 28, 1974; Statement of position 74-01;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices in the mortgage banking industry, December 30, 1974; Statement of position 74-12;
American Institute of Certified Public Accountants. Accounting Standards Division
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Conceptual framework for accounting and reporting : responses to issues raised in FASB Discussion memorandum, June 6, 1974 (FASB File reference 1004); Statement of position 74-09;
American Institute of Certified Public Accountants. Accounting Standards Division
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Contingencies arising from energy shortages; Statement of position 74-01;
American Institute of Certified Public Accountants. Accounting Standards Division
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Disclosure in annual stockholder reports; comments on Securities Exchange Act release no. 10591; Statement of position 74-02;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial accounting and reporting by colleges and universities : proposal to the Financial Accounting Standards Board to amend AICPA industry audit guide on audits of colleges and universities. August 31, 1974; Statement of position 74-08;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial accounting and reporting by face-amount certificate companies : proposal to the Financial Accounting Standards Board to amend AICPA Industry audit guide on audits of investment companies with respect to face-amount certificate companies. December 10, 1974; Statement of position 74-11;
American Institute of Certified Public Accountants. Accounting Standards Division
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Recognition of profit on sales of receivables with recourse : recommendation to Financial Accounting Standards Board. June 14, 1974; Statement of position 74-06;
American Institute of Certified Public Accountants. Accounting Standards Division
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Reporting the effects of general price-level changes in financial statements : responses to issues raised in FASB Discussion Memorandum, February 15, 1974 (FASB file reference 1013), April 5, 1974; Statement of position 74-03;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on savings and loan subordinated debt, January 24, 1974;Savings and loan subordinated debt, January 24, 1974 ; Statement of position 74-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on financial reporting for segments of a business enterprise, July 16, 1974;Financial reporting for segments of a business enterprise, July 16, 1974; Statement of position 74-07; Statement of position 74-07
American Institute of Certified Public Accountants. Accounting Standards Division, issuing body
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Audits of fire and casualty insurance companies: revision of form of auditor's report; Statement of position 1974 July;
American Institute of Certified Public Accountants. Auditing Standards Division
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Standards for systems for the preparation of financial forecasts; Exposure draft (American Institute of Certified Public Accountants), 1974, March 28
American Institute of Certified Public Accountants. MAS Development and Liaison Subcommittee. Forecasting Task Force
The Executive Committee of the Management Advisory Services Division created a task force in 1973 to develop standards for the preparation of financial forecasts. This report represents the results of a study made by the members of that task force. The purpose of this report is to delineate standards which would provide guidance to the preparers of financial forecasts and to the developers of forecasting systems and give increased confidence to the public and the users of forecasts where the standards have been followed. The preparation of a financial forecast is the responsibility of the management of an entity. Management may acquire the assistance and counsel of outside professionals in meeting this responsibility. CPAs may assist management in the preparation of financial forecasts and in the development of forecasting systems. This report does not address standards for reporting or disclosure requirements of financial forecasts or third party attestation by CPAs on financial forecasts. These standards are applicable to the preparation of financial forecasts developed on a recurring basis as the output of a forecasting system. Standards for the preparation of one-time forecasts and for the preparation of feasibility studies are currently under development.
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Proposed APB opinion : Disclosure of lease commitments by lessees;Disclosure of lease commitments by lessees; Exposure draft (American Institute of Certified Public Accountants), 1973, Jan. 9
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion provides for separate disclosure of (a) the total lease rentals charged against operations for each period presented; (b) the minimum annual rentals payable in each of the five succeeding years and thereafter by five-year periods for all leases with noncancelable terms of more than one year; and (c) the present value of all leases with noncancelable terms of more than one year, computed on a net basis if reasonably determinable.