AICPA News Update - July 13, 2012 

    Whether Taxes Will Increase in 2013 Remains Anybody's Guess 
    Published July 13, 2012

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    AICPA News Update
    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
     
     
     
     
      In This Update: July 13, 2012 - Volume 15 No. 28  
     
    Whether Taxes Will Increase in 2013 Remains Anybody's Guess
    Three Ethics Resources for CPAs
    Clarified Standards Transition Required for Year-End 2012 Audits
    Auditing Standards Board Issues SAS No. 126 on Going Concern
    Exposure Draft of Three Clarified SSARSs Issued, Including Proposed Revised Compilation Service Objective
    New AICPA Insights® Blog Posts
           
     
    Whether Taxes Will Increase in 2013 Remains Anybody’s Guess
     

    The Supreme Court’s decision upholding the Affordable Care Act confirmed that taxpayers whose income exceeds a threshold amount will be subject to a 3.8% Medicare surtax on net investment income, effectively raising their marginal income tax rate. However, whether the Bush era tax cuts will be extended and, if so, for whom, remains an open question. In light of this uncertainty, CPAs may want to start planning for possible 2013 tax increases now, particularly for clients who will benefit from transferring assets to family members, decisions that can take time to make. Download a free Medicare surtax chart from Robert Keebler, CPA, and listen to his recent podcast on how to plan for the Medicare surtax.

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    Three Ethics Resources for CPAs
     

    With the importance of ethics and non-financial reporting rising on the global agenda, CPAs are in a unique position to make an important contribution to creating a sustainable ethical operating environment. The AICPA and CIMA have developed a number of resources to assist CPAs in guiding their organizations to long-term sustainability and success. The Ethical Reflection Checklist is designed to provide organizations and individuals with an overview of how well ethical practices are embedded in the business. The CGMA Case Study: Navigating Ethical Issues highlights issues related to non-disclosure at the corporate level that come to the attention of non-executive financial managers and controllers. Responding to Ethical Dilemmas: CGMA Ethics Resources provides links to resources to help CGMAs navigate ethical dilemmas and respond in a manner that upholds their professional standards.

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    Clarified Standards Transition Required for Year-End 2012 Audits
     

    CPAs around the U.S. are enjoying summer breaks, but need to start preparing for the Dec. 15, 2012, transition to the clarified auditing standards effective for calendar year 2012 audits. New requirements may affect interim testing and other fieldwork and some mandate changes to the report. If your firm develops and maintains audit methodologies, then you need to be prepared—and to prepare clients who will be impacted by the clarified standards. Even if your firm relies on commercially provided audit methodologies, you still need to understand the underlying standards and requirements to ensure you use your methodology to complete audits as effectively and efficiently as possible while remaining compliant with the standards. The AICPA has developed the Improving the Clarity of Auditing Standards webpage with a number of free resources to help CPAs prepare for the Dec. 15 deadline.

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    Auditing Standards Board Issues SAS No. 126 on Going Concern
     

    Read a summary of Statement on Auditing Standards No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (Redrafted), which the Auditing Standards Board has issued as a result of its Clarity Project to supersede SAS No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern, as amended (AICPA, Professional Standards, AU sec. 341 and AU-C sec. 570). SAS No. 126 does not change or expand SAS No. 59, as amended, in any significant respect. The ASB has moved forward with the clarity redraft of SAS No. 59, as amended, so that it is consistent with the format of the other clarified SASs that were recently issued. However, the ASB decided to delay convergence with International Standard on Auditing 570, Going Concern, pending the Financial Accounting Standards Board’s anticipated development of accounting guidance addressing going concern. SAS No. 126 is effective for audits of financial statements for periods ending on or after Dec. 15, 2012.

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    Exposure Draft of Three Clarified SSARSs Issued, Including Proposed Revised Compilation Service Objective
     

    The Professional Ethics Executive Committee has exposed for public comment a proposed revision to Interpretation 101-3, “Performance of Nonattest Services,” that clarifies, among other things, that the preparation of financial statements would be considered a nonattest service, regardless of whether such service was performed as part of an attest (audit, review or compilation) engagement. The Accounting and Review Services Committee has exposed for public comment a trio of proposed Statements on Standards for Accounting and Review Services that, if issued as final standards, would change the nature of a compilation engagement from a prepare and present (submission) service to a read and report service. The proposed SSARSs would also require legends, notations or disclaimer language be placed on or with the financial statements when the accountant prepares financial statements but is not engaged to compile. In addition to the proposed revisions, the trio of proposed SSARSs have been issued in the clarity format as part of the ARSC’s Clarity Project. The comment period for the exposure drafts ends Aug. 31.

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    New AICPA Insights® Blog Posts
     

    The AICPA’s official blog, AICPA Insights, offers timely posts on the CPA profession and trends that are impacting it. Catch up on these posts you might have missed. Be sure to see every post by signing up for AICPA Insights’ RSS feed or email subscription.

     

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    “The 125th Anniversary of the AICPA is a testament to the five-letter word that engulfs the profession: TRUST.”
    Matthew D. Cekander, CPA

     
         



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