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Prospective Financial Information
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Ensure you have the most current authoritative guidance related to Prospective Financial Information.
The 2012 AICPA Guide Prospective Financial Information provides information for entities that prepare prospective financial information, as well as practitioners who compile, examine and perform other agreed upon procedures on prospective financial information.
The guide offers clear and practical guidance on recent developments in areas such as risk assessment, internal controls, and revenue recognition. All content is reviewed by industry experts and the appropriate AICPA senior committees.
This guide includes relevant guidance contained in applicable standards and other technical sources. Illustrative engagement letters, representation letters and sample reports are also included. The appendixes include excerpts from the SEC rules regarding financial projections and IRS regulations regarding tax shelter opinions. All content is reviewed by industry experts and the appropriate AICPA senior committee.
Updates significant to this edition include technical guidance contained in:
- SSAE No. 17, Reporting on Compiled Prospective Financial Statements when the Practitioner’s Independence is Impaired
As the September 1, 2012 edition of the guide is fully updated to conform with the new Clarified Standards, it would continue to be appropriate to treat, as authoritative, the auditing guidance contained in the previous edition, fully considering changes to auditing standards effective through December 14, 2012, for clients not subject to the new Clarified Auditing Standards.
The AICPA has made available certain sections of this guide, focusing on the following topics, for immediate download:
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Paperback
Product# AAGPRO12P
Online
Product# WPR-XX
eBook
Product# AAGPRO12E
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| Reporting on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (SOC 2)
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The AICPA Guide Reporting on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (SOC 2SM) provides “how-to” guidance for service auditors performing examinations under AT section 101, Attest Engagements (AICPA, Professional Standards), to report on a service organization’s controls over its system relevant to security, availability, processing integrity, confidentiality, or privacy, commonly referred to as a service organization controls (SOC) 2 engagement.
Updated as of March 1, 2012, the guide includes relevant guidance contained in applicable standards and other technical sources. It explains the relationship between a service organization and its user entities, provides examples of service organizations including those that provide cloud computing services, identifies the criteria in Trust Service Principles and Criteria as the criteria to be used to evaluate the design and operating effectiveness of controls, explains the difference between a type 1 and type 2 SOC 2SM report and provides an overview of the three reporting options for CPAs reporting on controls at a service organization. It describes the matters to be considered and procedures to be performed by the service auditor in planning and performing the engagement to test (1) the fairness of the presentation of management’s description of the service organization’s system; (2) the suitability of the design and operating effectiveness of the controls included in the description; and (3) in a SOC 2 engagement that addresses the privacy principle, whether the service organization complied with the commitments in its statement of privacy practices. It also covers the service auditor’s responsibilities when reporting on a SOC 2 engagement.
This guide update includes a new comprehensive illustrative type 2 SOC 2 report which contains all of the components of a type 2 SOC 2 report. In addition, it includes expanded information on unique challenges and risks service auditor will encounter in performing SOC 2 or SOC 3SM engagements for cloud computing service organizations.
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Paperback
Product# AAGSOP12P
Online
Product# WSOC2
eBook
Product# AAGSOP12E
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Service Organizations: Applying SSAE No. 16, Reporting on Controls at a Service Organization
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This new guide is for CPAs reporting on controls at a service organization that affect user entities’ internal control over financial reporting. It is designed to assist CPAs in transitioning from performing a service auditor’s engagement under Statement on Auditing Standards (SAS) No. 70, Service Organizations, to doing so under Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization,which replaces the guidance for service auditors in SAS No. 70.
With the growth in business specialization, many entities outsource tasks or functions to other entities (service organizations). In some cases, the service organization generates data or other information that is incorporated in the user entity’s financial statements. Because the auditor is responsible for auditing all the information in the user entity’s financial statements, including the information generated by the service organization, the auditor must find a way to obtain evidence about the financial statement assertions affected by the service organization. One of the most efficient ways of doing so is to obtain a service auditor’s report, which provides information and an independent CPA’s opinion on whether the service organization’s description of its system is fairly presented, and whether the controls over that system were suitably designed (and in a type 2 report operating effectively). The controls addressed in SSAE No. 16 are those a service organization implements to prevent, or detect and correct, errors or omissions in the information it provides to user entities. SSAE No. 16 is effective for service auditors’ reports for periods ending on or after June 15, 2011, with earlier implementation permitted.
One of the biggest differences introduced by SSAE No. 16 is that the service auditor is required to obtain a written assertion from management of the service organization about the matters the CPA is reporting on. To help CPAs and management accomplish this aspect of the engagement, the guide includes an illustrative management assertion for a type 1 report and a type 2 report. In addition, the guide contains over 20 illustrative service auditor’s reports for the various situations that may require modification of the report. The guide contains chapters on planning, performing, and reporting on a service auditor’s engagement, SSAE No. 16 itself, illustrative type 1 and type 2 reports, management representation letters and control objectives for various types of service organizations. This guide also assists service auditors in understanding the kinds of information auditors of the financial statements of user entities need from a service auditor’s report.
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Paperback
Product# 127910
Online
Product# WSOC1
eBook
Product# AAGASO11E
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