OMB Memo on Auditing
On June 23rd, OMB issued Memo M-25-30: Ensuring Accountability: How We Oversee, Audit, and Improve. It reinforces the importance of federal audits in providing transparency and accountability while preventing waste, fraud, and abuse. The memo also ties to the July 14th update of OMB Circular A-136, which revises federal financial reporting requirements, including moving to a single-year presentation.
Presidential EO on Grants
On August 7th, the President issued an EO creating a review process for discretionary grants. It also calls for updates to the Uniform Guidance and a review of the terms and conditions of federal awards.
DRAFT 2025 Compliance Supplement
After much delay, the draft of the 2025 Compliance Supplement has been released. Key proposed changes include updates to program compliance requirements, the removal of COVID-19 funding programs from higher risk designations, and two Part 3 sections for compliance testing, one under the prior Uniform Guidance and one under the 2024 Uniform Guidance.
AICPA Updates Quality Management Resources
To help firms prepare for the December 15 deadline, the AICPA has updated its quality management resources. The revised Quality Management Practice Aid expands on SQMS No. 1 objectives, clarifies ultimate responsibility for the QM system, and addresses sole practitioner considerations. It provides deeper coverage of the eight QM components, highlighting new requirements, small-firm implementation differences, and practical tools like risk libraries and documentation templates. The aid also clarifies evaluation requirements and expands guidance on documentation. In addition, the AICPA released The Monitoring and Remediation Process for a Firm’s System of Quality Management, which offers requirements, application guidance, and tips for continuous improvement.
Public Sector Current Landscape & Future Recommendations
Government entities rely on strong accounting, auditing, and finance functions to ensure transparency and accountability. But attracting and retaining CPAs in the public sector, and securing quality audit services, remains a challenge. The joint AICPA & NASACT report outlines critical findings and solutions in valuing CPAs, shifting from commodity-based to value-based engagements, strengthening the pipeline, and more! The bottom line is, to sustain accountability in the public sector, we must prioritize CPAs as essential partners in public service, and create an environment where they can thrive.
NASBA & AICPA Update Uniform Accountancy Act
NASBA and the AICPA have issued the 9th edition of the Uniform Accountancy Act which acts as a model piece of legislation that can be used by individual state boards of accountancy to create consistency and uniformity. The new edition includes 3 pathways to licensure as well as changes to mobility requirements. It is important to note that each state must adopt these requirements before they can be applied in that state.
ASB Issues New Exposure Draft on Fraud
On July 2, 2025 the ASB issued a Proposed SAS on fraud in an audit of financial statements. The Exposure Draft, Proposed SAS The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, proposes to supersede AU-C section 240, Consideration of Fraud in a Financial Statement Audit, in AICPA Professional Standards, and amend various other AU-C sections.
Evaluating GAAP Choice
In this week’s blog, we explore the newly released GAAP Utilization Report from the GASB. State and local governments often have flexibility in choosing a financial reporting framework, but what drives that decision? This report offers valuable insights into the factors that influence whether governments adopt GAAP or rely on alternative frameworks. The research highlights key trends across states, counties, municipalities, and special districts, including which states require GAAP and what conditions increase the likelihood of GAAP adoption.
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.
