COVID19: GAGAS Audit Alert
GAO has issued an audit alert to provide some considerations for auditors as to how COVID19 will impact Yellow Book audits. The alert addresses risk assessment, audit evidence, quality control. While nonauthoritative, the alert can help auditors think about the impact...
OMB Allows Several Covid_Related Flexibilities to Expire
OMB has issued an updated memo addressing Covid-related flexibilities provided under prior OMB Memos. Many of the flexibilities offered in the earlier memos have been rescinded. The memo does permit two flexibility measures to continue – coverage of salaries and single audit submission deadlines. However, the flexibility for 2020 year ends has been rescinded.
AICPA Issued Technical Q&A for CARES Act Accounting
The AICPA has issued a Technical Q&A to provide guidance on how nongovernmental entities should account for monies received under the CARES Act. The Q&A addresses questions related to how to account for the forgiveable portion of the PPP loans. GASB has issued a separate exposure draft addressing accounting for governmental entities.
GASB Proposes Application Guidance on CARES Act
GASB has issued an exposure draft, Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020 and Coronavirus Diseases, to address questions relating to the proper accounting for CARES Act funding including PPP. The Q&A addresses questions about whether this would be treated as an extraordinary or special item, as operating or nonoperating revenue and when does a forgivable loan become revenue. Comments are due June 25th.
