SEFA Reporting for Provider Relief Funds
The AICPA has issued a Technical Q&A to address questions surrounding reporting on the SEFA when the amount reported does not tie back to the financial statements due to DHHS’s requirement to report based on the reporting to the Portal. The TQA provides guidance on the application of AU-C 725 to this scenario.
ASB Survey on Auditing LCEs
The AICPA’s Auditing Standards Board (ASB) is interested in hearing from auditors who perform audits of less complex entities (LCEs). They want to know your thoughts on what the ASB can do to make GAAS more scalable including even potentially issuing a separate set of standards! Give your feedback by November 22 to be heard.
SSARS Proposal – QM
The AICPA’s Accounting & Review Services Committee (ARSC) has issued an exposure draft titled Quality Management for an Engagement Performed In Accordance with SSARS. As the AICPA has already exposed changes to the current quality control standards and a related SAS about QM at the engagement level, ARSC is providing guidance on the application of QM to SSARS engagements. Comments are due by January 31, 2022.
GLS Retreat Recap
The GLS team held their first retreat in Orlando, FL earlier this month. Leveraging Disney excellence in customer service and quality, we used the home of the Magic Kingdom as the setting for our retreat. Our three day retreat offered each person an opportunity to lead sessions and help advance the company’s goals. We focused on areas for improvements and celebrated our wins. We used the Disney Institute book titled ‘Be Our Guest’ as the basis for the agenda of our retreat. In addition to deep work, we also had some fun team building experiences. Overall, we got a lot out of our 3 days together and we look forward to making it an annual tradition!
Proposed Ethics Revisions: Loans, Acquisitions, and Other Transactions
The AICPA has issued a proposal to update key terminology and certain ethics interpretations to better align with changes made by the SEC. The AICPA issued a temporary enforcement policy earlier this year. The goal is for this proposal to make the needed alignments. Comments are due January 5, 2022.
Proposed Changes to Peer Review
The AICPA has issued a proposal to make updates to the Peer Review standards. The changes are primarily formatting to make the standards more user friendly. There are a handful of substantive changes as well. Comments are due by December 15, 2021.
Q3 2021 In Review
This week’s GLS blog addresses the final standards that were issued by the AICPA, FASB and GASB in the third quarter of 2021. While it was a light quarter from a standard setting perspective, some of the issued standards address implementation issues which are always helpful. As we expect some big standards to issue in Q4, a light quarter is likely a good thing as all standard setters have big projects on their plate as well!
Ethics Revised Exposure Draft: Unpaid Fees
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a proposal to revise the rules around unpaid fees. The current rules use a one year period with no considerations of materiality. The proposal would move to a principles based approach with a threats and safeguards application. Comments are due December 20, 2021.
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