New Tools for Auditing Provider Relief Funds
The AICPA’s Government Audit Quality Center has released 4 tools that can help auditors make sense of auditing provider relief funds. It addresses the unique HHS audit requirements as well as how to handle Parent / Subsidiary relationships. It also has a tool for auditors new to performing single audits as well as a checklist for organizations getting their first single audit. The GAQC has made these available to the public and you do NOT need to be a GAQC member to access (although the membership is more than worth the investment!)
Yellow Book Report Updates
While much of the focus of the implementation of SAS 134-140 have been on the financial statement report and the Single Audit report, it is important to note that when the AICPA issued updated examples in their A&A guide, it included changes to the Yellow Book report as well. We’ll review some of the biggest changes to make sure these minor edits are included when issuing GAGAS reports.
Accounting for Vaccines
The AICPA’s Healthcare Expert Panel has issued a Technical Q&A regarding the accounting for vaccines that were provided during the pandemic. The guidance applies to nonprofits and for profit entities. The TQA requires entities to evaluate whether the transaction is exchange or nonexchange and if nonexchange whether the entity is acting as a principal or an agent.
Proposed Changes to AU-C 935
The AICPA has issued an exposure draft addressing AU-C 935, Compliance Audits. This section is used when performing Single Audits. The appendix references were in need of an update from other recently issued SASes. This would correct the appendix to ensure auditor’s understood what paragraphs in various AU-C sections do not apply when performing Single Audits. Comments are due May 16.
Chapter 7, Presentation
FASB has issued a new Chapter to the Concepts Statements focusing on Presentation. Presentation includes how the elements are presented as totals and subtotals on the face of the financial statements. While Concept Statements are not GAAP, they are the theory used by the board to create GAAP.
Proposed ASU – Disclosure of Supplier Finance Program Obligations
FASB has issued an exposure draft which would require additional disclosure about supplier financing arrangements sometimes referred to as reverse factoring. These disclosures would provide users with information about the agreements and the location of the obligation in the financial statements. Comments are due March 21.
Chapter 4, Conceptual Framework: Elements
The FASB has issued an update to the definition of key elements in the Concept Statements. The definitions of an asset, liability, revenue and expenses have all received an update. This blog will discuss what’s changing and how the concept statements interact with the writing of ASUs.
Information System Services Ethics Update
The Professional Ethics Executive Committee (PEEC) of the AICPA has postponed the implementation of the Information System Services Interpretation an additional year. In addition, PEEC has also provided a new practice aid. The interpretation will now be effective in January 2023.
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.
