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Clarification of the scope of the audit and accounting guide investment companies and accounting by parent companies and equity method investor for investments in investment companies; Statement of position 07-1
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement on auditing standards: understanding the entity and its environment and assessing the risks of material misstatement; Exposure draft (American Institute of Certified Public Accountants), 2007
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed revisions to the AICPA standards for performing and reporting on peer reviews; Exposure draft (American Institute of Certified Public Accountants), 2007, April 16
American Institute of Certified Public Accountants. Peer Review Board
The most significant conclusions to come from the work of the above task forces were (1) a recommendation to merge the two peer review programs and (2) a recommendation to reengineer the reporting process to be more understandable and usable in light of the growing mandate that the results of peer reviews be made more widely available. The PRB has issued this exposure draft to propose those recommendations and incorporate other revisions to the Standards and related Interpretations (AICPA Professional Standards, PR Section 100) that are expected to result in a more efficient and effective Program. To ensure Program integrity and usefulness, the PRB designed the proposed revisions to meet stakeholders’ needs. The revisions recognize the importance peer review plays in the state board of accountancy licensure process. Approximately 40 state boards require peer review, as do other regulators such as the Government Accountability Office. The PRB strongly believes that the proposed revisions will improve peer review execution and rigor. Also, a new reporting model designed to meet the needs of reviewed firms and other stakeholders will enhance peer review report clarity, comparability and understandability.
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Proposal of Professional Ethics Division: Proposed interpretation 501-8 under rule 501: "Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies on indemnication and limitation of liability agreements with a client"; Exposure draft (American Institute of Certified Public Accountants), 2007, December 3
American Institute of Certified Public Accountants. Professional Edthics Executive Committee
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Comment Letters on Proposal of Professional Ethics Division: Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles; Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles, May 15, 2007
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Comment Letters on Proposal of Professional Ethics Division, Proposed Revision of ET Section 92: Definition of Firm, Proposed Addition of ET Section 92: Definition of Network, Proposed Addition of ET Section (w: Definition of Network Firm, Proposed Interpretation 101-17, Networks and Network Firms, August 13, 200
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Proposal of Professional Ethics Division; Exposure draft (American Institute of Certified Public Accountants), 2007, Aug. 13
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
Proposed revision of ET section 92: Definintion of Firm; Proposed addition to ET section 92: Definition of network; Proposed interpretation of 101-17, , Networks and Network Firms
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Proposal of Professional Ethics Division: Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles; Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles, May 15, 2007; Exposure draft (American Institute of Certified Public Accountants), 2007, May 15
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
The Committee recognizes that specific threats to meeting the objectives of the fundamental principles may arise when providing professional services to clients and employers. Because it is impossible to address in the Code every situation that creates such threats and specify the appropriate safeguards to mitigate or eliminate those threats, the proposed Framework provides guidance to members when faced with making decisions on ethical matters that are not explicitly addressed by the Code. Under no circumstances, however, may the proposed Framework be used to justify noncompliance with the prohibitions or requirements contained in the rules, interpretations, and rulings in the Code. In cases where a member identifies a threat that is not clearly insignificant (that is, it is more than trivial and inconsequential), the member is required to apply safeguards to eliminate the threat or reduce it to an acceptable level. If a threat cannot be sufficiently mitigated through the application of safeguards, or if a member is unable to implement appropriate safeguards, the member should decline or discontinue the specific professional service. Because the nature of the threats and safeguards may differ for members in public practice and members not in public practice, the proposed Framework provides specific examples relevant to members in public practice and members who are not in public practice. In addition, the proposed Framework contains guidance on ethical conflict resolution that is relevant to all members.
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Proposal of Professional Ethics Division, Proposed Revision of ET Section 92: Definition of Firm, Proposed Addition of ET Section 92: Definition of Network, Proposed Addition of ET Section (w: Definition of Network Firm, Proposed Interpretation 101-17, Networks and Network Firms, August 13, 2007; Exposure Draft (American Institute of Certified Public Accountants), 2007, August 13
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Proposed revisions to AICPA/NASBA Uniform Accountancy Act sections 23, 7 and 14; Exposure draft (American Institute of Certified Public Accountants), 2007, March
American Institute of Certified Public Accountants. UAACommittee; National Association of State Boards of Accountancy. UAA Committee
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Proposed statement on standards for accounting and review services : Elimination of certain references to statements on auditing standards and incorporation of appropriate guidance into statements on standards for accounting and review services;Elimination of certain references to statements on auditing standards and incorporation of appropriate guidance into statements on standards for accounting and review services; Exposure draft (American Institute of Certified Public Accountants), 2006, Dec. 1
American Institute of Certified Public Accountants. Accounting and Review Services Committee
The proposed Statement would amend AR sections 100, 200, 300, and 400. In addition, the following Interpretations are anticipated to be affected: Withdraw Interpretation No. 4, “Discovery of Information After the Date of the Accountant’s Report,†of AR section 100. Amend Interpretation No. 11, “Reporting on Uncertainties†by eliminating the reference to SAS No. 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern and incorporating guidance specific to compilation and review engagements. Conform Interpretation No. 15, “Differentiating a Financial Statement Presentation From a Trial Balance,†of AR section 100 by deleting the “typical titles†for financial statements and instead referencing the examples of financial statement titles included in AR section 100.04 as revised by the proposed Statement.
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Proposed statement on standards for accounting and review services: Elimination of certain references to statements on auditing standards and incorporation of appropriate guidance into statements on standards for accounting and review services; Exposure draft (American Institute of Certified Public Accountants), 2006, December 1
American Institute of Certified Public Accountants. Accounting and Review Services Committee
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Comment Letters on Proposed statement on auditing standards : Omnibus--2006, July 25,2006
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement on auditing standards : Omnibus--2006;Omnibus--2006 ; Exposure draft (American Institute of Certified Public Accountants), 2006, July 25
American Institute of Certified Public Accountants. Auditing Standards Board
1. The proposed SAS Omnibus will amend the general and reporting standards that were not amended by SAS No. 105. The proposed SAS Omnibus will also amend those SASs that quote the 10 standards to conform them with the changes in SAS No. 105 and to the changes proposed in this Statement. 2. The proposed amendment to SAS No. 99, Consideration of Fraud in a Financial Statement Audit, adds a footnote to SAS No. 99 that provides a clear link between the auditor’s consideration of fraud and the auditor’s assessment of risk and the auditor’s procedures in response to those assessed risks. 3. The amendments in this exposure draft are necessary to remove references to the completion of fieldwork . 4. The date of management’s representation letter is changed to align it with the requirement in SAS No. 103 that the auditor’s report not be dated prior to the date on which the auditor has obtained sufficient appropriate audit evidence.
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Proposed statement on auditing standards : The auditor's communication with those charged with governance;Auditor's communication with those charged with governance; Exposure draft (American Institute of Certified Public Accountants), 2006, March 10
American Institute of Certified Public Accountants. Auditing Standards Board
This exposure draft introduces a proposed Statement on Auditing Standards (SAS) that will replace SAS No. 61, Communication With Audit Committees, as amended. This proposed SAS establishes standards and provides guidance to an auditor on matters to be communicated with those charged with governance.
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Proposed statement on quality control standards : A Firm's system of quality control;Firm's system of quality control; Exposure draft (American Institute of Certified Public Accountants), 2006, July 28
American Institute of Certified Public Accountants. Auditing Standards Board
The proposed SQCS defines the engagement quality control review (often referred to as a concurring review), and requires firms to establish criteria to determine which engagements are to be subject to an engagement quality control review. It also provides guidance on policies and procedures for performing engagement quality control reviews. An engagement quality control review should include a review of the financial statements or other subject matter information and the report, and, in particular, consideration of whether the report is appropriate. An engagement quality control review also should include either (i) a discussion with the practitioner-in-charge, (ii) a review of selected working papers relating to the significant judgments the engagement team made and the conclusions they reached, or (iii) both discussion and review. The decision to review selected working papers in addition to, or instead of, discussion with the practitioner-incharge depends on the complexity of the engagement and the risk that the report might not be appropriate in the circumstances.
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Proposed statement on standards for attestation engagements: Reporting on an entity’s internal control over financial reporting (To supersede Chapter 5, “Reporting on an Entity’s Internal Control Over Financial Reporting,†of Statement on Standards for Attestation Engagements No. 10, Attestation Standards: Revision and Recodification, as amended);Reporting on an entity’s internal control over financial reporting; Exposure draft (American Institute of Certified Public Accountants), 2006, Jan. 19
American Institute of Certified Public Accountants. Auditing Standards Board
This Statement establishes standards and provides guidance to a practitioner reporting on an entity's internal control over financial reporting (or on an assertion thereon)1,2 as of a point in time or for a period.3 Guidance is provided on examining: a. The design and operating effectiveness of an entity's internal control. b. The design and operating effectiveness of the internal control of a component of an entity, for example, an operating division of an entity or its accounts receivable function. (See paragraph 247.) c. The effectiveness of the design of an entity's internal control, including internal control that has not yet been placed in operation. (In such engagements, management makes no assertion about the operating effectiveness of internal control.) (See paragraphs 248 through 254.)4 d. The design and operating effectiveness of an entity's internal control based on criteria established by a regulatory agency. (See paragraphs 255 through 259.)
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Proposed statement on standards of attestation engagements : SSAE hierarchy;SSAE hierarchy; Exposure draft (American Institute of Certified Public Accountants), 2006, July 25
American Institute of Certified Public Accountants. Auditing Standards Board
The proposed SSAE: 1. Identifies the body of attest literature. 2. Clarifies the authority of attest publications issued by the AICPA and others. 3. Specifies which attest publications the practitioner must comply with and those he or she should be aware of when conducting an attest engagement. 4. Amends the 11 attestation standards to conform them with the use of terms established in SSAE No. 13, Defining Professional Requirements in Statements on Standards for Attestation Engagements.
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Proposed statement on standards for valuation services: Valuation of a business, business ownership interest, security, or intangible asset; Exposure draft (American Institute of Certified Public Accountants), 2006,October 16
American Institute of Certified Public Accountants. Consulting Services Executive Committee
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Reporting pursuant to the Global Investment Performance Standards; Statement of position 06-1;
American Institute of Certified Public Accountants. Investment Performance Standards Task Force
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Comment Letters on Omnibus Proposal of Professional Ethics Division Interpretations and Rulings: Proposed Interpretation 101-6 Under Rule 101: Indemnification, Limitation of Liability, and ADR Clauses in Engagement Letters, Proposed Deletion of Ethics Ruling No. 94 Under Rule 101: Indemnification Clause in Engagement Letters, Proposed Deletion of Ethics Ruling No. 95 Under Rule 101: Agreement With Attest Client to Use ADR Techniques, Proposed Revision to Interpretation 101-3 Under Rule 101: Performance of Nonattest Services: Forensic Accounting Services and Tax Compliance Services, September 8, 2006
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Omnibus proposal of Professional Ethics Division interpretations and rulings; Exposure draft (American Institute of Certified Public Accountants), 2006, Sept. 8
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
Consistent with the original proposal issued in September 2005, the proposed interpretation states that independence would not be impaired if a member and the client agree that the unsuccessful party in a lawsuit or alternative dispute resolution (ADR) proceeding between them will pay the legal fees and expenses of the successful party. The proposed interpretation retains the conclusion that an indemnification or limitation of liability provision related to nonattest services performed for an attest client (that is, where the provision relates only to the nonattest services engagement and not the attest engagement) would not impair a member’s independence with respect to that client.
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Omnibus Proposal of Professional Ethics Division Interpretations and Rulings: Proposed Interpretation 101-6 Under Rule 101: Indemnification, Limitation of Liability, and ADR Clauses in Engagement Letters, Proposed Deletion of Ethics Ruling No. 94 Under Rule 101: Indemnification Clause in Engagement Letters, Proposed Deletion of Ethics Ruling No. 95 Under Rule 101: Agreement With Attest Client to Use ADR Techniques, Proposed Revision to Interpretation 101-3 Under Rule 101: Performance of Nonattest Services: Forensic Accounting Services and Tax Compliance Services, September 8, 2006; Exposure Draft (American Institute of Certified Public Accountants), 2006, September 8
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Proposed statement on standards for accounting and review services : Compilation of specified elements, accounts, or items of a financial statement;Compilation of specified elements, accounts, or items of a financial statement; Exposure draft (American Institute of Certified Public Accountants), 2005, March 18
American Institute of Certified Public Accountants. Accounting and Review Services Committee
Statements on Standards for Accounting and Review Services (SSARS) currently provide guidance concerning the standards and procedures applicable to compilations and reviews of financial statements. By definition, presentations of specified elements, accounts, or items of a financial statement, or pro forma financial information are not financial statements. This proposed Statement will allow an accountant to compile and report on specified elements, accounts, or items of a financial statement and to compile and report on pro forma financial information in accordance with SSARS. It should be noted that this proposed standard would apply when an accountant is engaged to compile, or does issue a compilation report on, specified elements, accounts, or items of a financial statement or pro forma financial information. The ARSC recognizes that this approach is inconsistent with Statements on Standards for Accounting and Review Services (SSARS) No. 1 through No. 11. Those Statements set forth performance and communication requirements when an accountant submits unaudited financial statements of a nonpublic entity to his or her client or to third parties (SSARS No. 8, Amendment to Statements on Standards for Accounting and Review Services No. I, Compilation and Review of Financial Statements [AICPA, Professional Standards, vol. 2, AR sec. 100], allows the accountant to either report on management use only financial statements, or document an understanding with the entity through the use of an engagement letter regarding the services to be performed and the limitations on the use of the financial statements). The ARSC believes that this approach to specified elements, accounts, or items of a financial statement or pro forma financial information (subject matter that is less than a financial statement as defined by SSARS No. 1 [AR sec. 100.04]) responds best to user and member needs while at the same time protecting the interests of the public. This proposed Statement will not amend or revise the guidance in Chapter 4, "Reporting on Pro Forma Financial Information," of Statement on Standards for Attestation Engagements (SSAE) No. 10, Attestation Standards: Revision and Recodification (AICPA, Professional Standards, vol. 1, AT sec. 401), which provides guidance to a practitioner who is engaged to issue or does issue an examination or review report on pro forma financial information. Additionally, this proposed Statement will not amend or revise the guidance in Statement on Auditing Standards No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623), as amended, which provides guidance when an independent auditor is requested to express an opinion on one or more specified elements, accounts, or items of a financial statement.
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Proposed statement on standards for accounting and review services : Omnibus statement on standards for accounting and review services, 2005 ;Omnibus statement on standards for accounting and review services, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, March 18
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed Statement will: 1. Amend SSARS No. 1, Compilation and Review of Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 100), to require the accountant to communicate any fraud that comes to his or her attention, even if the matter is considered inconsequential; 2. Amend SSARS No. 2, Reporting on Comparative Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 200), to allow for the successor accountant to compile or review a restatement adjustment when prior period financial statements have been changed; 3. Amend SSARS No. 1 to provide guidance regarding when an accountant should consider obtaining an updating representation letter from management. The proposed Statement would be effective for compilations and reviews of financial statements for periods ending on or after December 15, 2005. . Early application would be permitted. The proposed Statement would amend SSARS No. 1 and SSARS No. 2.
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Proposed statement on standards for accounting and review services: Restricting the use of an accountant's compilation or review report;Restricting the use of an accountant's compilation or review report; Exposure draft (American Institute of Certified Public Accountants), 2005, March 18, 2005
American Institute of Certified Public Accountants. Accounting and Review Services Committee
This proposed Statement will provide guidance to accountants on restricting the use of reports issued pursuant to Statements on Standards for Accounting and Review Services (SSARS) by: 1. Defining the terms general use and restricted use. 2. Describing the circumstances in which the use of an accountant’s report should be restricted. 3. Specifying the language to be used in accountant’s reports that are restricted regarding use.
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Accounting by insurance enterprises for deferred acquisition costs in connection with modifications or exchanges of insurance contracts; Statement of position 05-1;
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
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Comment Letters on Proposed statement on auditing standards: Amendment of statement on auditing standards no. 69, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles, for Nongovernmental Entities, Amendment of statement on auditing standards no. 69, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles, for Nongovernmental Entities, May 9, 2005
American Institute of Certified Public Accountants. Auditing Standards Board
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Comment Letters on Proposed Statement on Auditing Standards, Amendment to Statement on Auditing Standards No. 69, The Meaning of Present Fairly in conformity with Generally Accepted Accounting Principles, For Nongovernmental Entities, May 9, 2005
American Institute of Certified Public Accountants. Auditing Standards Board
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Comment Letters on Proposed statement on auditing standards: Communication of internal control related matters noted in an audit (To supersede Statement on Auditing Standards No. 60, Communication of Internal Control Related Matters Noted in an Audit), September 1, 2005
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement on auditing standards: Amendment of statement on auditing standards no. 69, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles, for Nongovernmental Entities;Amendment of statement on auditing standards no. 69, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles, for Nongovernmental Entities; Exposure draft (American Institute of Certified Public Accountants), 2005, May 9
American Institute of Certified Public Accountants. Auditing Standards Board
This exposure draft introduces a proposed Statement on Auditing Standards (SAS) that will amend SAS No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles (AICPA, Professional Standards, vol. 1, AU sec. 411). This proposed SAS applies to nongovernmental entities. It will have no impact on the generally accepted accounting principles (GAAP) hierarchy for state and local governments or for federal governmental entities.
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Proposed Statement on Auditing Standards, Amendment to Statement on Auditing Standards No. 69, The Meaning of Present Fairly in conformity with Generally Accepted Accounting Principles, For Nongovernmental Entities, May 9, 2005; Exposure Draft (American Institute of Certified Public Accountants), 2005, May 9
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement on auditing standards: Communication of internal control related matters noted in an audit (To supersede Statement on Auditing Standards No. 60, Communication of Internal Control Related Matters Noted in an Audit), September 1, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, Sept. 1
American Institute of Certified Public Accountants. Auditing Standards Board
This Statement establishes standards and provides guidance for communicating matters related to an entity's internal control over financial reporting1 observed during an audit of financial statements.2 The internal control related matters specified by this Statement should be communicated to management and those charged with governance. The term those charged with governance refers to the person(s) with responsibility for overseeing (a) the strategic direction of the entity and (b) the entity’s financial reporting and disclosure process. In most entities, governance is a collective responsibility that may be carried out by a board of directors, a committee of the board of directors (for example, an audit committee), management, a committee of management (for example, a finance or budget committee), partners, or equivalent persons. In some smaller entities, one person may be charged with governance, for example, the owner in an owner-managed entity, or a sole trustee. Therefore, in some cases management and those charged with governance are the same people.
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Proposed statement on auditing standards : Defining professional requirements in statements on auditing standards;Proposed statement on standards for attestation engagements : Defining professional requirements in statements on standards for attestation engagements;Defining professional requirements in statements on auditing standards;Defining professional requirements in statements on standards for attestation engagements; Exposure draft (American Institute of Certified Public Accountants), 2005, March 2
American Institute of Certified Public Accountants. Auditing Standards Board
In serving the public interest, the Auditing Standards Board (ASB) aims to set high quality auditing and assurance standards for nonissuers that are understandable, clear, and capable of consistent application, thereby serving to enhance the quality and uniformity of practice. In doing so, the ASB seeks to balance the needs of a wide range of users, including auditors, those responsible for governance, regulators, and the public in general. Until now, the accounting profession has not expressly defined imperatives used to describe different degrees of the auditor's responsibility when conducting audit engagements in accordance with generally accepted auditing standards and attestation engagements in accordance with the attestation standards. The ASB believes that by defining the levels of responsibilities, auditing and attestation standards will be clarified, thereby assisting auditors and practitioners with their work and improving the quality of audits and attestation engagements. The ASB also believes that using a definition of these imperatives in common with that used by the Public Companies Accounting Oversight Board (PCAOB) and that proposed by the International Auditing and Assurance Standards Board (IAASB) promotes common understanding of the audit or attestation engagement in the United States and abroad and, accordingly, is in the public interest. This exposure draft introduces a proposed Statement on Auditing Standards (SAS) entitled Defining Professional Requirements in Statements on Auditing Standards and a proposed Statement on Standards for Attestation Engagements entitled Defining Professional Requirements in Statements on Auditing Standards for Attestation Engagements. The proposed SAS and SSAE define the terminology the ASB will use to describe the degrees of responsibility that the requirements impose on the auditor or the practitioner. The proposed SAS and SSAE define two categories of professional requirements: 1. Requirements - The auditor or practitioner is required to comply with a requirement in all cases in which the circumstances exist to which the requirement applies. A requirement is indicated by the words must or is required. 2. Presumptive requirements - The auditor or practitioner is also required to comply with a presumptive requirement in all cases in which the circumstances exist to which the presumptive requirement applies, but in rare circumstances, the auditor or practitioner may depart from a presumptive requirement provided he or she documents his or her justification for departure and how alternative procedures performed in the circumstances were sufficient to achieve the objectives of the presumptive requirement. The word should indicates a presumptive requirement. SASs and SSAEs also contain explanatory material that is intended to provide further explanation and guidance on the professional requirements. Such explanatory material is intended to be descriptive rather than imperative. All professional requirements that a SAS or SSAE impose on the auditor or practitioner will be identifiable by the use of must, is required, or should statements. The definitions in the proposed SAS are consistent with the terms adopted by the PCAOB in Rule 3101, Certain Terms Used in Auditing and Related Professional Practice Standards, and the definitions proposed by the IAASB in its exposure draft, Proposed Policy Statement, "Clarifying Professional Requirements in International Standards Issued by the IAASB." The comment period for this exposure draft ends on May 15, 2005. Although the degree of responsibility attached to the terms must, is required, and should was not previously defined, the ASB believes that the terminology, as defined in this proposed SAS and SSAE, is consistent with the existing interpretation of the SASs and SSAEs. The provisions of these Statements will apply to existing SASs and SSAEs. This approach is consistent with the adoption of the use of terms by the PCAOB. The provisions of these Statements are not intended to apply to interpretive guidance issued by the ASB. The drafting conventions in the proposed SAS and SSAE will be applied on a prospective basis to exposure drafts approved for issue after final approval of this SAS and SSAE. Like the IAASB, the ASB intends to review all standards on a regular basis and to address national issues as circumstances require.
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Proposed statements on auditing standards: Amendment to “Due Professional Care in the Performance of Work†of Statement on Auditing Standards No. 1, Codification of Auditing Standards and Procedures; Amendment to Statement on Auditing Standards No. 95, Generally Accepted Auditing Standards; Audit Evidence; Audit Risk and Materiality in Conducting an Audit; Planning and Supervision; Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement; Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained;Amendment to Statement on Auditing Standards No. 39, Audit Sampling; Exposure draft (American Institute of Certified Public Accountants), 2005, June 15
American Institute of Certified Public Accountants. Auditing Standards Board
These proposed SASs establish standards and provide guidance concerning the auditor’s assessment of the risks of material misstatement in a financial statement audit, and the design and performance of audit procedures whose nature, timing, and extent are responsive to the assessed risks. Additionally, these proposed SASs establish standards and provide guidance on planning and supervision, the nature of audit evidence, and evaluating whether the audit evidence obtained affords a reasonable basis for an opinion regarding the financial statements under audit. These proposed SASs were originally exposed on December 2, 2002 (except for the amendment to SAS No. 1 which was approved for exposure by the ASB on April 28, 2005). As a result of significant revisions made to the original exposure draft, the ASB concluded that the exposure drafts should be re-exposed for comment.
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Proposed statement on auditing standards : Audit documentation;Audit documentation; Exposure draft (American Institute of Certified Public Accountants), 2005, Jan. 12
American Institute of Certified Public Accountants. Auditing Standards Board and American Institute of Certified Public Accountants. Audit Documentation Task Force
This exposure draft introduces a proposed Statement on Auditing Standards (SAS) that will replace SAS No. 96, Audit Documentation (AICPA, Professional Standards, vol. 1, AU sec. 339). This proposed SAS establishes standards and provides guidance to an auditor on audit documentation for audits of financial statements or other financial information being reported on. Issues surrounding audit documentation continue to be discussed due to events affecting the profession that post-date the development and issuance of SAS No. 96. Specifically, some state regulators and government auditors seek more uniformity in the preparation, filing, and retention of audit documentation of nonissuers. Audit documentation is an essential element of audit quality. Although audit documentation alone does not guarantee audit quality, the process of preparing sufficient and competent audit documentation contributes to the quality of an audit. The Auditing Standards Board (ASB) believes this exposure draft is responsive to the issues that have been raised in the U.S. nonissuer community and will improve audit practice and serve the public interest. In developing this exposure draft, the ASB considered the documentation requirements of the Public Company Accounting Oversight Board's Auditing Standard No. 3, Audit Documentation; the International Auditing and Assurance Standards Board's exposure draft, ISA 230, Audit Documentation, issued in September 2004; suggestions received from the National Association of State Boards of Accountancy; and Government Auditing Standards issued by the Comptroller General of the United States. The proposed SAS: 1. Uses an "experienced auditor" as a reference point. The proposed SAS requires the auditor to consider, when preparing audit documentation, the needs of an experienced auditor having no previous connection with the audit to understand the procedures performed, the evidence obtained, and specific conclusions reached. An experienced auditor, for the purposes of this Statement, is defined as an individual who possesses the competencies and skills that would have enabled him or her to perform the audit and therefore has an understanding of audit processes and of auditing and reporting issues relevant to the industry in which the entity operates. 2. Lists factors that the auditor should consider in determining the nature and extent of the audit documentation to be prepared for a particular audit area or auditing procedure. 3. Requires the auditor, in documenting the nature, timing, and extent of audit procedures performed, to record (a) who performed the audit work and the date of such work and (b) who reviewed specific audit documentation and the date of such review. 4. Guides the auditor when making further changes to audit documentation after delivery of the auditor's report. It provides guidance on the auditor's response to information that becomes known in the period after the auditor's report. When new procedures are performed after this date, the auditor should document the change, when and by whom the changes were made, and the effect of the changes on the auditor's previous conclusions. 5. Proposes that the auditor assemble the audit documentation to form the final engagement file within 60 days following the delivery of the auditor's report to the entity. After this date, the proposed SAS requires the auditor not to delete or discard existing audit documentation, and to appropriately document any subsequent additions or changes. 6. Provides guidance on documentation that should be retained and requires the auditor to document audit evidence that is identified as being contradictory or inconsistent with the final conclusions, and how the auditor addressed the contradiction or inconsistency. 7. Specifies a minimum file retention period that is ordinarily not expected to be shorter than five years from the date of the auditor's report, recognizing that state statutes or other regulatory requirements may specify a longer retention period. 8. Requires the auditor to document his or her justification for a departure from the SASs in the working papers. In addition to the proposed audit documentation SAS, the exposure draft includes proposed amendments to SAS No. 1, Codification of Auditing Standards and Procedures (AICPA, Professional Standards, vol. 1, AU sec. 530.01 and .05, "Dating of the Independent Auditor's Report"). The proposed amendment requires that the auditor's report not be dated earlier than the date on which the auditor has obtained sufficient competent audit evidence to support the opinion on the financial statements. It also proposes an amendment to SAS No. 95, Generally Accepted Auditing Standards (AICPA, Professional Standards, vol. 1, AU sec. 150.04, "Generally Accepted Auditing Standards"). The amendment adds a requirement for the auditor to document his or her justification for a departure from the SASs in the working papers. This proposed SAS would supersede SAS No. 96 and amend SAS No. 1 and SAS No. 95.
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Proposed statement on standards for valuation services : Valuation of a business, business ownership interest, security, or intangible asset;Valuation of a business, business ownership interest, security, or intangible asset; Exposure draft (American Institute of Certified Public Accountants), 2005, March 30
American Institute of Certified Public Accountants. Consulting Services Executive Committee
Given the increasing number of members of the AICPA who are performing business valuation engagements or some aspect thereof, the AICPA Consulting Services Executive Committee has written this standard to improve the consistency and quality of practice among AICPA members performing business valuations. AICPA members will be required to follow this standard whenever they undertake to perform a business valuation engagement that culminates in the expression of a conclusion of value or a calculated value.
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Comment Letters on Omnibus proposal of professional ethics division interpretations and rulings, September 15, 2005
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Comment Letters on Proposal of Professional Ethics Division: Proposed revision to "Other Considerations" in interpretation 101-1, Interpretation of Rule 101, under rule 101 and proposed Conceptual Framework for AICPA Independence Standards, September 15, 2005
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
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Omnibus proposal of professional ethics division interpretations and rulings, June 17, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, June 17
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
PROPOSED ETHICS RULING NO. 113 UNDER RULE 102: Acceptance or Offering of Gifts or Entertainment . PROPOSED ETHICS RULING NO. 114 UNDER RULE 101: Acceptance or Offering of Gifts and Entertainment to or From an Attest Client . PROPOSED DELETION OF ETHICS RULING NO. 1 UNDER RULE 101: Acceptance of a Gift. PROPOSED REVISION TO INTERPRETATION 501-1 UNDER RULE 501: Requests for Records or Other Documents by Clients Retention of Client Records. PROPOSED REVISION OF ETHICS RULING NO. 189 UNDER RULE 501: Requests for Client Records and Supporting Documents Other Information.
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Omnibus proposal of professional ethics division interpretations and rulings, September 15, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, Sept. 15
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
PROPOSED NEW INTERPRETATION 101-16 UNDER RULE 101: Indemnification, Limitation of Liability, and ADR Clauses in Engagement Letters . PROPOSED DELETION OF ETHICS RULING NO. 94 UNDER RULE 101: Indemnification Clause in Engagement Letters . PROPOSED DELETION OF ETHICS RULING NO. 95 UNDER RULE 101: Agreement With Attest Client to Use ADR Techniques . PROPOSED NEW INTERPRETATION 101-17 UNDER RULE 101: Performance of Client Advocacy Services, Fact Witness Testimony, and Forensic Accounting Services .
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Proposal of Professional Ethics Division interpretations and rulings, April 18, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, April 18
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
PROPOSED NEW INTERPRETATION 101-15 UNDER RULE 101: Financial Relationships; PROPOSED DELETION OF ETHICS RULING NO. 35 UNDER RULE 101. Stockholder in Mutual Funds; PROPOSED DELETION OF ETHICS RULING NO. 36 UNDER RULE 101 Participant in Investment Club; PROPOSED DELETION OF ETHICS RULING NO. 66 UNDER RULE 101. Member’s Retirement or Savings Plan Has Financial Interest in Client; PROPOSED DELETION OF ETHICS RULING NO. 68 UNDER RULE 101. Blind Trust; PROPOSED DELETION OF ETHICS RULING NO. 79 UNDER RULE 101 Member’s Investment in a Partnership That Invests in Client; PROPOSED DELETION OF ETHICS RULING NO. 109 UNDER RULE 101 Member’s Investment in Financial Services Products That Invest in Clients.
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Proposal of Professional Ethics Division: Proposed revision to "Other Considerations" in interpretation 101-1, Interpretation of Rule 101, under rule 101 and proposed Conceptual Framework for AICPA Independence Standards, September 15, 2005; Exposure draft (American Institute of Certified Public Accountants), 2005, Sept. 15
American Institute of Certified Public Accountants. Professional Ethics Executive Committee
The AICPA Professional Ethics Executive Committee (the PEEC, or committee) is exposing for comment a proposed revision to interpretation 101-1, Interpretation of Rule 101, under Rule 101, Independence [ET sec. 101.02], of the AICPA’s Code of Professional Conduct (the Code), and is also exposing for comment the Conceptual Framework for AICPA Independence Standards (Conceptual Framework), which is related to that revision.
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Comment Submitted To: President’s Advisory Panel on Federal Tax Reform, Request for Comments #1 (Posed February 16, 2005), March 18, 2005
American Institute of Certified Public Accountants. Tax Division
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Accounting for real estate time-sharing transactions; Statement of position 04-2; Statement of position 04-2
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
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Proposed statement of position : Accounting by insurance enterprises for deferred acquisition costs on internal replacements;Accounting by insurance enterprises for deferred acquisition costs on internal replacements; Exposure draft (American Institute of Certified Public Accountants), 2004, Nov. 29
American Institute of Certified Public Accountants. Accounting Standards Executive Committee
This Statement of Position (SOP) provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements other than those specifically described in Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of lnvestments. The SOP defines an internal replacement as a modification in product benefits, coverages, or features that occurs by the exchange of a contract for a new contract, amendment, endorsement, or rider to a contract, or the election of a feature within a contract. Modifications that result from the election by the contract holder of a feature, coverage, or a right that was within the original contract are not considered internal replacements for purposes of this guidance as long as all of the conditions listed in paragraph 9 of this SOP are met. The SOP introduces the terms integrated and nonintegrated contract features and specifies that nonintegrated features are evaluated separately from the base contract and that integrated features are evaluated in conjunction with the base contract. Contract modifications involving integrated features are to be evaluated to determine whether the contract has substantially changed as a result of the modification. Contract modifications meeting all of the conditions in paragraph 14 of this SOP result in a replacement contract that is substantially unchanged from the replaced contract and should be accounted for as a continuation of the replaced contract. An internal replacement that is determined to result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from the replaced contract in an internal replacement transaction that results in a substantially changed contract should not be deferred in connection with the replacement contract. Unamortized deferred acquisition costs and the present value of future profits continue to be subject to loss recognition testing in accordance with the provisions of FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, as amended. The notes to the financial statements should describe the accounting policy applied to internal replacements, including whether or not the company has availed itself of the alternative application guidance outlined in paragraphs 17 and 18 of this SOP and, if so, for which kinds of internal replacement transactions. This SOP is effective for internal replacements occurring in fiscal years beginning after December 15, 2005, with earlier adoption encouraged. Restatement of previously issued annual financial statements is not permitted. Initial application of this SOP should be as of the beginning of an entity’s fiscal year (that is, if the SOP is adopted prior to the effective date and during an interim period, all prior interim periods of the year of adoption should be restated). Disclosure of the effect of the change on the results of operations of the period of change is required. If the financial statements of the year of adoption are presented separately or included in comparative financial statements, the notes to the financial statements should disclose (a) the fact that this SOP has been adopted and the effective date of adoption, and (b) the nature of any differences in accounting p
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Auditing the statement of social insurance; Statement of position 04-1; Statement of position 04-1
American Institute of Certified Public Accountants. Auditing Standards Board
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Proposed statement of position: Auditing the satement of social insurance; Exposure draft (American Institute of Certified Public Accountants), 2004, March 5
American Institute of Certified Public Accountants. Auditing Standards Board