GAO has issued its 2022-2027 Strategic Plan. It includes the identification of 12 trends impacting the United States as well as 4 key efforts which are near-term priorities to provide the Congress with timely and fact-based analysis of the most important issues facing the nation.
OMB has issued its 2022 Compliance Supplement. While originally promised in April of 2022, OMB issued it on May 12 which is much better than the previous years that were issued in August. The Compliance Supplement includes new ARPA programs that were not addressed in the 2021 Supplement so this can be very helpful to auditors wrapping up some outstanding 2021 audits. The Supplement should be used for 6/30/22 year ends and beyond.
The PCAOB has issued a staff spotlight looking at some auditor considerations when using a service provider in the confirmation process. It encourages auditors to evaluate whether they have maintained control over the confirmation and to what extent they can rely on third party controls. This is nonauthoritative guidance to help improve audit quality.
FASB has issued a proposal to amend the sunset provision in ASU 2020-04 due to the extension of LIBOR into 2024. In addition, it has proposed to expand the definition of SOFR due to market changes. Comments are due June 6.
OMB has updated the 2021 Compliance Supplement for two programs – Provider Relief Funds and Coronavirus State and Local Fiscal Recovery Funds. DHHS can remove the special test & provisions requirements for Provider Relief Funds (93.498) which related to out of network patient expenses. In order to reduce burden on smaller entities, the Treasury is now offering an alternative examination engagement in lieu of requiring a Program Specific Audit or Single Audit for entities that would not have required this level of audit had it not been for the receipt of CSLFRF funds (21.027). Treasury estimates 10,000 entities will be able to forego a Single Audit in lieu of this new compliance examination which has been added to Appendix VII thereby still maintaining accountability but reducing costs and complexity.
The AICPA has proposed significant changes to AU-C 600 and the requirements of a group audit. Some changes are definitional but the new standard also includes a more risk based approach for addressing financial statements that contain multiple components. Comments are due June 21, 2022.
