Yellow Book Technical Update

Yellow Book Technical Update

GAO has issued a technical update to Yellow Book. In a very rare move, GAO has made modifications to a handful of paragraphs in the 2018 Yellow Book. The updates address the concept of equity, SKE for nonaudit services and changes to evaluation of internal controls for performance audits. Updates were effective upon issuance.

Q1 2021 in Review

Q1 2021 in Review

The first quarter of 2021 is a wrap. It was a light quarter for standard setting and given everything else we have going on, that’s probably not a bad thing! This blog covers the few standards that were finalized in Q1.

Third Party Assessments

Third Party Assessments

The AICPA has issued a Technical Q&A to address common questions regarding what qualifies as a third party assessment and which standards including independence should be applied by the third party. The TQA provides guidance on what qualifies as a TQA, which independence rules apply and which standards can be used by CPAs.

Proposed NOCLAR SAS

Proposed NOCLAR SAS

The AICPA has issued a very narrow proposal to add a new requirement for successor auditors to discuss suspected fraud and NOCLAR with predecessor auditors if granted permission by management as part of the client acceptance process. This is the first of two blogs addressing new requirements regarding NOCLAR.

Quality Management Proposal: Part 3

Quality Management Proposal: Part 3

The final blog in our QM series addresses the proposed audit standard. The audit standard assists the engagement team to understand their responsibilities on applying the system of quality management to an individual audit engagement. Comments are due June 11, 2021.

Quality Management Proposal: Part 2

Quality Management Proposal: Part 2

This week’s blog continues with the discussion of the AICPA’s proposed changes to Quality Management. SQMS 2 addresses the role and responsibilities of the engagement quality reviewer. We’ll look at the proposal including the proposed cooling off period and qualifications to give you an overview of the proposed standard.

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