Discover the latest AICPA Technical Q&As issued in September, focusing on two timely issues: tariffs refunds and AI in SOC engagements. This episode highlights must-know updates relevant for CPAs and assurance professionals.
- Overview of new TQAs on tariff accounting and AI in SOC 1 & SOC 2 engagements
- Key considerations for AI’s impact on SOC examination objectives and trust services criteria
- Guidance for evaluating service organization controls when AI is involved
- Accounting and presentation challenges for tariff refunds after recent Supreme Court rulings
- Practical insights on recognition, revenue, risk disclosures, and ongoing monitoring during the refund process
New TQAs on Tariffs & AI and SOC Engagements
Hello, and welcome to the Genuine Learning Blog! I’m Melisa Galasso, and today we’re highlighting two Technical Questions and Answers (TQAs) issued by the AICPA in September. While they address very different topics, both offer valuable guidance on issues CPAs are facing today.
TQAs can sometimes fly under the radar, so let’s take a closer look at these two releases.
AI and SOC 1 and SOC 2 Engagements
The first, TQA Section 9561, addresses how service organizations’ use of artificial intelligence (AI) affects SOC 1 and SOC 2 examinations.
For SOC 1 engagements, the guidance focuses on whether AI affects internal controls over financial reporting and the related control objectives.
For SOC 2 engagements, the considerations are broader. AI may affect security, availability, processing integrity, confidentiality, and privacy. The TQA also addresses AI-related service commitments, system requirements, and the appropriateness of selected trust services categories and criteria.
Both types of engagements share additional considerations, including:
- Practitioner competencies related to AI
- Management’s system descriptions and risk assessments
- AI governance
- Subservice organizations’ use of AI
If you perform SOC examinations involving organizations that use AI, this TQA is worth reviewing.
Accounting for Tariff Refunds
The second release, TQA Sections 7700.01–.05, addresses accounting considerations for refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
In February 2026, the Supreme Court ruled that tariffs imposed under IEEPA were unlawful, creating questions about how businesses should account for the resulting refunds.
The TQA addresses several important considerations:
- Recognition: When should a refund be recognized as an asset?
- Presentation: How should tariff refunds appear in the financial statements?
- Customer contracts: What happens when a company receives a refund for tariffs it previously passed along to customers?
- Disclosures: What considerations apply to risks and uncertainties, revenue recognition, and subsequent events?
With refund processing and related legal proceedings continuing to evolve, organizations should monitor developments and evaluate their financial reporting implications.
Staying Current
Although TQAs are nonauthoritative guidance, they provide practical insight into accounting and attestation questions that practitioners encounter. Both releases are worth reviewing if these topics affect your clients or engagements.
Thanks for joining me on the Genuine Learning Blog. I hope to see you again soon!
