Proposed Changes to AU-C 935

Proposed Changes to AU-C 935

The AICPA has issued an exposure draft addressing AU-C 935, Compliance Audits. This section is used when performing Single Audits. The appendix references were in need of an update from other recently issued SASes. This would correct the appendix to ensure auditor’s understood what paragraphs in various AU-C sections do not apply when performing Single Audits. Comments are due May 16.

SSARS Proposal – QM

SSARS Proposal – QM

The AICPA’s Accounting & Review Services Committee (ARSC) has issued an exposure draft titled Quality Management for an Engagement Performed In Accordance with SSARS. As the AICPA has already exposed changes to the current quality control standards and a related SAS about QM at the engagement level, ARSC is providing guidance on the application of QM to SSARS engagements. Comments are due by January 31, 2022.

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.

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