AICPA News Update - January 4, 2013 

    "Fiscal Cliff" Legislation Includes Huge Number of Tax Provisions 
    Published January 04, 2013

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    AICPA

    AICPA News Update
    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
     
           
     
      In This Update: January 4, 2013 - Volume 16 No. 1  
     
    "Fiscal Cliff" Legislation Includes Huge Number of Tax Provisions
    AICPA Flags Concerns about IFAC’s International Ethics Standards Board’s Exposure Draft on Responding to a Suspected Illegal Act
    ASB Issues Omnibus SAS to Amend Two Clarified Auditing Standards
    TPA Issued on Effective Date of AU-C Section 905 in a Compliance Audit
    AICPA Working with NYSSCPA on New York City Certiorari Filings
    Opportunity for Free Subscription to CPA Letter Daily Begins Next Week
            
     
    "Fiscal Cliff" Legislation Includes Huge Number of Tax Provisions
     

    The American Taxpayer Relief Act, passed by Congress on Jan. 1, permanently extends a large number of tax items from the 2001 and 2003 tax acts and extends many expired tax provisions. Read this Journal of Accountancy article for a comprehensive look at the many changes contained in the bill, as well as other new taxes that took effect Jan. 1.

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    AICPA Flags Concerns about IFAC’s International Ethics Standards Board’s Exposure Draft on Responding to a Suspected Illegal Act
     

    The AICPA Professional Ethics Executive Committee has flagged a number of concerns about the requirements that would be imposed on professional accountants by an exposure draft issued in August 2012 by the International Federation of Accountants’ International Ethics Standards Board for Accountants. The IESBA exposure draft proposes new requirements under the IESBA Code of Ethics for Professional Accountants to address the circumstances where a professional accountant in public practice and business should override the fundamental principle of confidentiality and disclose a suspected illegal act committed by a client or employer to an appropriate external authority. In its comment letter, the PEEC provides alternatives to the IESBA’s proposal. 

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    ASB Issues Omnibus SAS to Amend Two Clarified Auditing Standards
     

    The Auditing Standards Board has issued Statement on Auditing Standards No. 127, Omnibus Statement on Auditing Standards—2013, to amend AU-C section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (AICPA, Professional Standards, AU-C sec. 600), to, among other things, permit making reference to the audit of a component auditor in the auditor’s report on the group financial statements when the component’s financial statements are prepared using a different financial reporting framework than that used for the group financial statements if certain criteria are met. The SAS also amends AU-C section 800, Special ConsiderationsAudits of Financial Statements Prepared in Accordance With Special Purpose Frameworks (AICPA, Professional Standards, AU-C sec. 800), to add an other basis of accounting that utilizes a definite set of logical, reasonable criteria that is applied to all material items appearing in financial statements to the bases of accounting defined as special purpose frameworks. The amendments become effective concurrently with the respective effective dates of AU-C section 600 and AU-C section 800. Read a complete description of this publication.

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    TPA Issued on Effective Date of AU-C Section 905 in a Compliance Audit
     

    A new Technical Question and Answer, developed by the AICPA Audit and Attest Standards and Governmental Auditing and Accounting teams, provides nonauthoritative guidance regarding which effective date in AU-C section 905, Alert That Restricts the Use of the Auditor’s Written Communication (AICPA, Professional Standards), to apply when, in a compliance audit performed in accordance with AU-C section 935, Compliance Audits (AICPA, Professional Standards), the financial statements of an entity are for a period prior to Dec. 15, 2012, but the opinion on compliance and reporting on internal control over compliance relating to that same period is issued after Dec. 15, 2012. The effective date used depends on the auditor’s professional judgment of the circumstances.

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    AICPA Working with NYSSCPA on New York City Certiorari Filings
     

    If your practice includes certifying operating income and expenses for certiorari filings, be advised that the AICPA Audit and Attest Standards Team is working with the Real Estate Committee of the New York State Society of CPAs to request that the Tax Commission of the City of New York modify Form TC309, Accountant's Certification, to comply with AICPA professional standards. These revisions are necessary to comply with new generally accepted auditing standards effective for periods ending on or after Dec. 15, 2012. We will keep you informed about the developments.

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    Opportunity for Free Subscription to CPA Letter Daily Begins Next Week
     

    Between Jan. 8 and 17, the AICPA will provide select editions of CPA Letter Daily to members who have not yet elected to receive the free electronic publication. Along with those newsletters, you will be able to opt-in to continue to receive this valuable news resource from the AICPA if you so choose. Use it to stay on top of tax developments this busy season, as CPA Letter Daily’s annual Tax Season Watch feature will soon begin and provide tax information each day. Join more than 185,000 of your colleagues and sign up today. You’ll get your first issue on Monday.

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