In December, the International Auditing and Assurance Standards Board issued the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The ISA for LCE standards will allow auditors to provide reasonable assurance for audits of general purpose financial statements by following a scaled back audit approach appropriate for less complex entities. ISA for LCE is effective for audits beginning on or after December 15, 2025 with early adoption permitted.
The AICPA & NASBA issued updated CPE Standards in January 2024. They made changes to definitions and clarified group internet based rules. They also addressed the often requested “hybrid” which is not an actual program type for NASBA sponsors. We’ll review the key changes and how they are impacting GLS’s operations.
In December, FASB issued a proposed chapter of the Conceptual Framework on measurement. The proposal identifies 2 systems of measurement: entry prices and exit prices. It provides the underlying theory that the board would use when determining which measurement system is appropriate when developing GAAP. Comments are due March 20, 2024.
In December, FASB issued a proposed ASU that helps organizations determine whether a transaction is an induced conversion or an extinguishment. The topic comes from stakeholder questions and was debated by the Emerging Issues Task Force (EITF). Comments are due March 18.
In November 2023, the DOL issued their Audit Quality study that found that 30% of ERISA audits from 2020 (prior to the adoption of SAS 136) were materially nonconforming. We’ll review the scope of the DOL’s review, their findings and recommendations for the future.
The AICPA issued their 2023 Trends report which provides data on trends related to supply and demand for accounting students as well as trends related to the CPA exam. The report continues to show a drop in bachelor and masters degrees with an increase in demand from firms. The report is really helpful as the visuals show the trends across decades to provide perspective!