Jul 24, 2019 | Auditing, Ethics
The AICPA’s Professional Ethics Executive Committee (PEEC) of the AICPA has published a revision to Independence Rule Interpretations related to Information System Services. The interpretation offers guidance to members that provide nonattest services related to an attest client’s information systems. It is much more detailed than previous guidance in order to help members understand under what circumstances independence would be impaired and when it would not be impaired. The newly released amendment is effective on January 1, 2021 and early implementation is allowed.
Jul 17, 2019 | Auditing
The AICPA’s Accounting and Review Services Committee has issued a proposed SSARS, Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks. The proposed amendments are intended to more closely align SSARS with International Standard on Review Engagements and as well as consider the relationship with the SASes. The proposal includes the requirement for the accountant to determine materiality in reviews of financial statements, permits the expression of an adverse conclusion, and also addresses terminology throughout the SSARS. The revisions would be effective for engagements performed in accordance with SSARSs on financial statements for periods ending on or after June 15, 2021. Comments are due by September 20, 2019.
Jul 10, 2019 | Auditing
The AICPA Auditing Standards Board has issued a Proposed SAS on Audit Evidence. The SAS is intended to modernize auditing standards to recognize new sources of information and evolving business technologies. Emerging technologies such as audit data analytics and blockchain are now used by financial statement preparers and by auditors alike. This evolution drives new challenges related to audit evidence and professional skepticism. The standard includes attributes and factors to be used in evaluating audit evidence. Feedback is due by September 18, 2019.
Jun 27, 2019 | Ethics, Government
The AICPA has issued a new interpretation related to the ethics code for state and local governments. This interpretation helps identify the entities related to a state or local government, which are considered affiliates and thus are subject to independence...
