QM Proposal Comment Period Extended

QM Proposal Comment Period Extended

The AICPA has extended the comment period for the trio of Quality Management proposals from June 11, 2021 to August 31, 2021; likely due to the extended tax season and lots of other exciting happenings. They have also provided a few glossary documents that provide executive summaries about the proposals and a sample comment letter template for those who may not be comfortable with writing feedback from scratch. They are also hosting a series of round tables in May and June that are open to the public that will feature a summary of the proposed statements followed by a live Q&A. Each roundtable will offer up to 1.5 hours of CPE and be limited to no more than 50 participants.

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.

Virtual Currency – New Practice Aid

Virtual Currency – New Practice Aid

Cryptocurrency is becoming a more recognized transaction with more entities participating in this ecosystem. The AICPA has issued non-authoritative guidance on accounting and auditing digital assets. Current FASB does not have authoritative guidance in this area, so the practice aid addresses some common considerations. In addition, it addresses the questions firms need to address before accepting a client and provides procedures to ensure that digital asset risks are properly identified and an appropriate audit response is performed. We’ll take a high-level look at some of the considerations for those contemplating moving into this area.

Proposed Changes to Risk Assessment Standards

Proposed Changes to Risk Assessment Standards

The AICPA has issued a proposed SAS to clarify and improve the risk assessment standards. For the past few years, the AICPA has focused its audit quality initiatives on risk assessment. Now that the IAASB has issued a final standard, the AICPA is proposing changes to align with the ISAs but also help firms better understand how to use risk assessment to plan and perform effective and efficient audits. This video blog covers the major changes in the standards. Comments are due November 25th.

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