Wiley Practitioner's Guide to GAAS 2020. Joanne M. Flood

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СКАЧАТЬ a basis of opinion section for all reports, not just those with modified opinions. Also, new requirements for inadequacy of going concern disclosures are included in the standard.

      ERISA Audit Reports

      In July 2019, the ASB released SAS 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. This new standard addresses the auditor’s responsibility to form an opinion and report on the audit of financial statements of employee benefit plans subject to ERISA. The standard has new requirements for engagement acceptance, audit risk assessment and response, communications with those charged with governance, procedures for ERISA section 103 (a)(3)(C) audit, and considerations relating to Form 5500. It also contains a new report format for these audits. This standard would be applied in place of AU-C 700 for ERISA audits.

Other Information Included in Annual Reports

      In July 2019, the ASB issued SAS 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports. The new SAS is designed to enhance transparency relating to the auditor’s responsibilities for other information included in annual reports and to reduce diversity in practice. SAS No. 137 clarifies the scope of documents that the auditor is required to subject to the procedures and states that though a document may be referred to as an annual report, such document may not meet the definition of annual report for purposes of the SAS. The determination as to which documents constitute the entity’s annual report is often difficult when the entity does not have a regulatory requirement to prepare an annual report or a framework that dictates what that annual report should contain. The new SAS includes a requirement for the auditor to obtain management’s written acknowledgment regarding which document or documents comprise the annual report.

      ATTESTATION STANDARDS

      The ASB has a project to develop a guide for an examination engagement on internal controls, other than an audit of ICFR that is integrated with a financial statement audit.

      Accounting and Review Standards

      In May 2018 the ARSC issued SSARS 24, Omnibus Statement on Standards for Accounting and Review Services—2018. SSARS No. 24 creates a new AR-C section—100, Special Considerations—International Reporting Issues. This new section applies when:

      The financial statements have been prepared in accordance with a financial reporting framework generally accepted in another country, or

      The compilation or review is to be performed in accordance with both the SSARS and another set of compilation or review standards.

      SSARS No. 24 also amends AR-C 60 and AR-C 90 to harmonize the SSARS with AR-C 930 on auditing international financial information for going concerns.

      SSARS No. 24 amends AR-C 90.39 to make the content of the review report consistent with the examples in Exhibit C of AR-C 90. Note that practitioners who have not been reporting in accordance with the illustrative reports should update their report templates.

      Except for the revision to AR-C 90.39, which is effective immediately, SSARS 24 is effective for compilations and reviews of financial statements for periods ending on or after June 15, 2019. The changes are included in the appropriate chapters in this book.

      PUBLICATION CURRENCY

      This publication is current through SAS No. 137, SSARS 24, and SSAE 18.

      Joanne M. Flood

      September 2020

ABOUT THE AUTHOR

      Joanne M. Flood, CPA, is an author and independent consultant on accounting and auditing technical topics and e-learning. She has experience as an auditor in both an international firm and a local firm and worked as a senior manager in the AICPA’s Professional Development group. She received her MBA summa cum laude in accounting from Adelphi University and her bachelor’s degree in English from Molloy College. Joanne received the New York State Society of Certified Public Accountants Award of Honor for outstanding scholastic achievement at Adelphi University. Joanne also has a certificate in Designing Interactive Multimedia Instruction from Teachers College, Columbia University.

      While in public accounting, Joanne worked on major clients in retail, manufacturing, and finance and on small business clients in construction, manufacturing, and professional services. At the AICPA, Joanne developed and wrote e-learning, text, and instructor-led training courses on US and international standards. She also produced training materials in a wide variety of media, including print, video, and audio, and pioneered the AICPA’s e-learning product line. Joanne resides on Long Island, New York, with her daughter, Elizabeth. Joanne is the author of the following Wiley publications:

       Financial Disclosure Checklist

       Wiley GAAP 2020: Interpretation and Application of Generally Accepted Accounting Principles

       Wiley Practitioner’s Guide to GAAS 2020: Covering All SASs, SSAEs, SSARSs, and Interpretations

       Wiley GAAP: Financial Statement Disclosures Manual (Wiley Regulatory Reporting), coming soon

       Wiley Revenue Recognition

1 AU-C 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards

       Scope

       Definitions of Terms

       Objectives of AU-C Section 200

       Requirements

       Management’s Responsibilities

       Auditor’s Objectives

       Ethical Requirements

       Professional Judgment and Skepticism

       Complying with GAAS

       GAAS and the GAAS Hierarchy

      SCOPE

      AU-C 200 describes the auditor’s overall responsibilities when conducting a GAAS audit, including the auditor’s overall СКАЧАТЬ