IAASB aims to enhance engagement quality reviews
New standards proposed by the International Auditing and Assurance Standards Board (IAASB) are designed to ensure that engagement quality reviews continue to be robust and support high-quality engagements. The IAASB is proposing changes that...
FASB Proposes Targeted Transition Relief to Institutions Applying the Credit Losses Standard
The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) that would ease transition to the credit losses standard by providing the option to measure certain types of assets at fair value....
Retirement plan auditors: What plan sponsors need to know about EBSA's CPA study
Retirement plan administrators hired a total of 7,330 CPA firms to audit 81,162 retirement plans across the country, according to a study published by the U.S. Labor Department’s Employee Benefits Security Administration (EBSA).
Changes related to peer review proposed for UAA
The National Association of State Boards of Accountancy (NASBA) is proposing changes to the Uniform Accountancy Act (UAA) Model Rules related to peer review programs. The newly proposed rules would change Article 7 of the UAA Model Rules and...
Enhanced audit standards changes that make sense
Changes are coming to the AICPA’s private company auditing standards, specifically AU-C section 260, AU-C section 550, and AU-C section 240. The standards will more closely align to the Public Company Accounting Oversight Board’s (PCAOB) standards.
Succeeding in the Era of "Always-On" Transformation
The Head, Heart, and Hands of Transformation
FASB's Investor Advisory Committee Meeting Recap
The Investor Advisory Committee (IAC) met on November 29, 2018. At the meeting, the FASB staff delivered updates and IAC members provided input on the following FASB topics...
How Will Audit’s Future Change?
We have moved the needle when it comes to audit quality, but we need the commitment if we want to experiment with what audit could be. –Barry Melancon, President, AICPA These words echoed through the ears of CPA attendees at this week’s...
Simplifying implementation of FASB’s not-for-profit financial reporting standard
Tax-exempt organizations are working through the biggest change to not-for-profit financial reporting in 25 years. FASB Accounting Standard Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of...
Why We Need to Audit Algorithms
Algorithmic decision-making and artificial intelligence (AI) hold enormous potential and are likely to be economic blockbusters, but we worry that the hype has led many people to overlook the serious problems of introducing algorithms into...

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FASB Makes Decisions on Leasing Standard Simplification

The Financial Accounting Standards Board (FASB) has made decisions to reduce costs and ease the implementation burden of the Leases standard for preparers.

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FASB Proposes Reorganizing Consolidation Guidance

FASB issued a proposal on September 20 that would reorganize and clarify the consolidation guidance in FASB Accounting Standards Codification Topic 810.

Stakeholders told the board that the consolidation guidance is difficult to understand and navigate. Proposed Accounting Standards Update, Consolidation (Topic 812): Reorganization, is an attempt to address those concerns.

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AICPA Audit Documentation Resources

Through its enhanced oversights, the AICPA Peer Review Program has found that the most common cause of material non-conformity in audits is a lack of documentation. Peer reviewers will be increasing their emphasis on this area moving forward. The AICPA has a new, free toolkit to help you document audits appropriately and comply with standards. It includes a tool for evaluating SOC 1 reports, model working papers, and more.

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Not-for-Profit Statements Being Overhauled by ASU 2016-14

By Lisa A. Ritter, CPA, CFE

The Financial Accounting Standards Board (FASB) revised the not-for-profit reporting model in its Accounting Standards Update (ASU) 2016-14, released in August 2016. ASU 2016-14 is effective for fiscal years beginning after Dec. 15, 2017. The most significant provisions of the update address four areas: classification of net assets, liquidity disclosures, functional expenses, and the classification and disclosure of underwater endowments.

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  Finding the Value in Fair Value

By Gretchen G. Naso, CVA

Over the past 15 years, fair value accounting has evolved to become a part of many private companies’ financial statements. This evolution has not come without controversy. Due to its heavy reliance on assumptions and professional judgment, fair value reporting is dismissed by critics as an art, not a science, and is often considered unreliable.

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    Time Is Running Out to Comply with the New FASB Revenue Recognition Standard
Planning for Lease Accounting Standard Should Be in Process, Too

By Kevin Bogle, KPMG LLP

Research indicates that some companies may have trouble meeting the reporting deadlines on at least one of two major accounting standards that financial statement preparers must implement over the coming two years. Revenue recognition – the more immediate, as it goes into effect on Jan. 1, 2018, for calendar-year-end public companies and Jan. 1, 2019, for calendar-year-end non-public companies – may represent a significant change, and one that many companies may be behind in implementing.

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