AICPA Committee and Task Force Updates Available
The Financial Reporting Center updates you on the activities of various technical committees and task forces though a quarterly newsletter supplement. The update summarizes the major achievements and issues deliberated by each group.
An updated activity report is available which includes the following committees and task forces:
- Auditing Standards Board
o ASB Update
ASB Issues Proposal to Move Content of AT Section 501 Into GAAS
- Service Organizations ED That Would Supersede AT Section 801
- Other Activity
- Accounting and Review Services Committee
- Assurance Services Executive Committee and Task Forces
- Assurance Services Executive Committee
- Assurance Service Executive Committee
- XBRL Assurance Task Force
- Assurance Services Executive Committee Sustainability Task Force
- Assurance Services Executive Committee Trust Information Integrity Task Force
- Federal Risk and Authorization Management Program (FedRAMP)
- Cloud Security Alliance and Service Organization Control ReportsSM
- Assurance Service Executive Committee Emerging Assurance Technologies Task Force
- Audit Data Standard working group
AICPA Employee Benefit Plans Expert Panel Develops TPAs on Application of ASU No. 2013-07
Developed by the AICPA Employee Benefit Plans Expert Panel, Technical Questions and Answers (TPA) 6931.18-.30 have been issued to provide nonauthoritative guidance about the effect of Financial Accounting Standards Board Accounting Standards Update No. 2013-07, Presentation of Financial Statements—Liquidation Basis of Accounting, on the accounting for primarily single employer defined benefit pension and defined contribution retirement plans. Readers are encouraged to read these TPAs as a collective set of guidance.
TPA Released Related to Management Representations
AICPA Technical Question and Answer (TPA) 8900.11, "Management Representations Regarding Prior Periods Presented That Were Audited by Predecessor Auditor" (AICPA, Technical Practice Aids), has been issued to provide nonauthoritative guidance when the prior period financial statements were audited by a predecessor auditor and the predecessor auditor's report on the prior period's financial statements is not reissued. The auditor is not required to obtain a representation letter covering the prior period financial statements because the auditor is not opining on the prior year when making reference to the prior period that was audited by a predecessor auditor. The TPA also discusses when additional representations may be necessary in the current year's letter.
Service Organizations ED That Would Supersede AT Section 801
On September 18, 2014, as part of its clarity project, the ASB issued an exposure draft (ED) of a proposed Statement on Standards for Attestation Engagements (SSAE or attestation standard) entitled Reporting on an Examination of Controls at a Service Organization Relevant to User Entities' Internal Control Over Financial Reporting: Clarification and Recodification, that would supersede AT section 801, Reporting on Controls at a Service Organization.
At section 801 and the ED are relevant when an auditor is auditing the financial statements of an entity that
The exposure draft is available at aicpa.org. Written comments on the ED are due by December 18, 2014.
- uses a service organization that processes transactions for the entity, and
- the service organization generates information that is incorporated in the user entity's financial statements.
Revenue Recognition Task Forces Release Additional Details on Select Implementation Issues
This week, the Aerospace, Asset Management and Not for Profit Revenue Recognition Task Forces released additional details of select implementation issues, due to ASU 2014-09 Revenue from Contracts With Customers. The additional information details the task force's concerns regarding specific transactions relevant to these three industries.
After additional consideration, development of implementation guidance and a thorough review by the AICPA Financial Reporting Executive Committee, the implementation guidance will be released for public comment.
Visit the Revenue Recognition Resource Center at aicpa.org to view the expanded discussion and to keep abreast of the public comment opportunities as they become available.
Technical Issues Committee Alert, October 2014
The AICPA Technical Issues Committee is a committee of CPA practitioner volunteers working to represent the views of local firms and their clients in the standards-setting process. The committee releases a quarterly newsletter informing interested parties of their activities and of items of concern for local firms and their clients.
TIC has released its October 2014 newsletter covering their work on, and highlights of, issues such as:
Read more in the October 2014 edition.
- TIC Comments on Notes to Financial Statements ED
- TIC's views on recent exposure drafts
- Audit, Accounting and Ethics Updates