Genuine Learning Blog

The Genuine Learning Blog is a video series designed to keep you abreast of the latest developments in accounting and auditing.  This is a not a teaser, marketing tool.  This blog breaking down new proposals from GASB, FASB, and the AICPA into short manageable videos.  Watching this series will make you better informed than your peers!

 

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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.

Quality Management Proposal: Part 1

Quality Management Proposal: Part 1

The AICPA has issued three new proposals related to quality management. The new SQM Standards will replace the extant quality control (SQCS) and provide a more scalable and risk based QM methodology. This is the first of three blogs which will dive into the details of each proposal. This blog addresses A Firm’s System of Quality Management and the components of a system of quality management.

PEEC 2021 Temporary Enforcement Policy

PEEC 2021 Temporary Enforcement Policy

The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a Temporary Policy Statement regarding the recent changes by the SEC to their independence rules. Because the rules do not align with the AICPA Code, while PEEC evaluates whether any changes are needed, PEEC has provided a temporary enforcement permitting auditors who follow both to be compliant if they adopt the new SEC rules. The policy is effective until rescinded.

The Future of Jobs Report

The Future of Jobs Report

The World Economic Forum has released its 2020 Future of Jobs Report which looks at the impact of technology on the job market. The report addresses the impact of COVID, a rise in online learning, and the need for reskilling. The jobs of tomorrow continue to require a different set of skills that we need to prepare workers for. This blog provides a high-level overview of some of the key takeaways from the report.

Professional Ethics: Strategy and Work Plan for 2021-2023

Professional Ethics: Strategy and Work Plan for 2021-2023

In 2019, the AICPA issued a consultation paper for feedback on the projects PEEC should address. After evaluating feedback, PEEC has issued their Strategy and Work Plan for 2021-2023 which includes standard setting and member enrichment projects. This week’s blog addresses what projects made the cut and when the projects will be kicking off.

Goodwill Impairment Proposal

Goodwill Impairment Proposal

FASB has issued a proposal to adjust the timing for when private entities and nonprofits would be required to identify triggering events for goodwill impairment. After initially identified by the AICPA’s Technical Issues Committee (TIC), it was determined that the cost and complexity associated with an interim consideration for an annual reporting outweighed the benefit. Comments are due January 20.

2020 Year in Review

2020 Year in Review

We’re kicking off the year with our annual year in review. This week’s blog focuses on the standards issued in 2020 by the AICPA, FASB and GASB. We’ll give a quick executive summary of what was finalized in 2020 for each standard setter as we kick off a new year of standard setting.

Updates to the CPA Exam

Updates to the CPA Exam

The AICPA has released its new CPA Exam Blueprint which outlines the format and content of the exam. Following a deep review of the topics covered in 2019, the Final Practice Analysis provides insights into the changes to the current exam. This update is much smaller than the expected impact of CPA Evolution which will overhaul the structure of the exam.

Updates to Virtual Currency Guidance

Updates to Virtual Currency Guidance

The AICPA has updated their Practice Aid on Accounting for and auditing of digital assets to address more niche Codification topics. The update includes discussion of accounting for broker dealers as well as investment companies. It also provides guidance on determining principal markets for fair value. The Digital Assets Working Group has been great in providing accounting and auditing guidance for entities as this topic is not well addressed in authoritative literature.

GASB Implementation Guidance Update—2021

GASB Implementation Guidance Update—2021

This week’s blog looks at the recently proposed GASB Implementation Guide for 2021 which provides questions and answers on a variety of topics ranging from derivative instruments and fiduciary activities to leases and nonexchange transactions. Comments are due February 15, 2021.

SLG Client Affiliate IG

SLG Client Affiliate IG

The AICPA has rolled out a Toolkit to Assist Firms in identifying affiliates under the new ET Section 1.224.020. In June 2019, the PEEC rolled out a new definition of affiliate for State and Local Governments. However, the new rules were complex so the AICPA has released a decision tree for identifying affiliates as well as a variety of tools that firms can use to determine their compliance with the independence standards.

Proposed SAS – Use of Specialists and External Pricing Sources

Proposed SAS – Use of Specialists and External Pricing Sources

The AICPA’s Auditing Standards Board has issued some proposed targeted improvements to guidance on the use of specialists and external pricing sources. The proposal incorporates some PCAOB guidance and provides additional application guidance for AU-C 501, 540 and 620. Comments are due February 4, 2021.

2020 Report to the Nations

2020 Report to the Nations

https://youtu.be/S83NcpsWbcQ Biennially the Association for Certified Fraud Examiners releases its Report to the Nations. The 2020 version provides insight into the type of fraud that were most common, who perpetrated the fraud and how they were caught. The report...

Fraud & COVID – A 2020 ACFE Report

Fraud & COVID – A 2020 ACFE Report

https://youtu.be/LOyi7k9xqZ8 We all know that COVID is impacting businesses in more ways than one. Unsurprisingly, we've seen an uptick in fraud during the COVID era. The ACFE has issued its September 2020 report providing interesting insights into fraud during COVID...

Staff Augmentation ED

Staff Augmentation ED

The AICPA’s Professional Ethics Executive Committee (PEEC) is re-proposing an interpretation for staff augmentation. This proposal would further limit the ability of firms to offer staff augmentation services. The proposal also offers two areas currently not addressed in the proposal as potential changes where PEEC is looking for additional feedback. Comments are due December 8, 2020.

Q3 2020 in Review

Q3 2020 in Review

Each quarter we review what issued as final standards during the quarter. While the Genuine Learning Blog focuses on what’s coming down the pike and tries to encourage participation in due process, we also know its important to be aware of what get’s finalized. The blog looks at the items issued by the AICPA, FASB and GASB that will be effective in the near future.

Topic 606 – Franchisor Practical Expedient

Topic 606 – Franchisor Practical Expedient

If you thought we were done with Revenue Recognition and Topic 606, you would definitely be surprised to hear that the Financial Accounting Standards Board (FASB) issued an exposure draft this morning to address revenue recognition for franchisors by offering a practical expedient. This standard was foreshadowed in the discussion for ASU 2020-05 which delayed revenue recognition by one year for private entities. Comments are due November 5th.

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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. 

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