AICPA News Update Vol. 13 No. 52 

    Published December 10, 2010

    AICPA

    AICPA News Update

    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession

    In This Update:

    December 10, 2010 - Volume 13 No. 52

    Senate Passes Bill Clarifying "Red Flags" Rule Application
    ARSC Revises Interpretation No. 30 to SSARS No. 1
    ASB Issues Revised Exposure Draft Resulting From Clarity Project
    Remember Broker-Dealer Annual Audit Requirements
    Treasury and SEC Leaders Comments Provide Insight into Financial Reform Actions
    Health Care Reform Marketing Toolkit Materials Available
    Get Your A&A Questions Answered by Those in the Know
    Senate Passes Bill Clarifying "Red Flags" Rule Application

    On November 30, the U.S. Senate unanimously passed the Red Flag Program Clarification Act of 2010, which clarifies "creditors" for the purposes of the Federal Trade Commission's Red Flags rule. The bill narrows the definition so that CPAs in public practice, in addition to lawyers, doctors, dentists and other health care and service providers, are not classified as creditors as they do not "offer or maintain accounts that pose a reasonably foreseeable risk of identity theft." The bill now heads to a vote in the U.S. House of Representatives. The AICPA and state CPA societies have fought tirelessly for this clarification over the past year. For more information on the Red Flags rule, the AICPA's lawsuit to prevent its enforcement against CPAs and how the rule affects your practice, visit AICPA.org. Also, read the AICPA's statement on the Senate vote.

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    ARSC Revises Interpretation No. 30 to SSARS No. 1

    The Accounting and Review Services Committee (ARSC) has revised Interpretation No. 30 to Statements on Standards for Accounting and Review Services (SSARS) No. 1, as amended, to provide guidance when the accountant reports on compiled or reviewed financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and the required comparative financial information is not provided. The revised interpretation also provides an illustrative paragraph to show how an accountant may report when an accountant is engaged to compile financial statements prepared in accordance with IFRS and management elects to omit substantially all disclosures, the statement of cash flows and comparative financial information. The revised interpretation will be conformed for the issuance of SSARS No. 19, Compilation and Review Engagements (AICPA, Professional Standards, vol. 2, AR secs. 60, 80, and 90), along with all other interpretations to SSARS No. 1.

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    ASB Issues Revised Exposure Draft Resulting From Clarity Project

    On September 30, 2009, the Auditing Standards Board (ASB) issued an exposure draft of the proposed Statement on Auditing Standards (SAS), Reporting on Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country. After revising the previous exposure draft for certain matters noted in comment letters, the ASB determined that it was necessary to re-expose the SAS and seek additional comments. The ASB issued Proposed Revised Statement on Auditing Standards, Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country, resulting from its Clarity Project: Supersedes AU section 534, Reporting on Financial Statements Prepared for Use in Other Countries, in AICPA Professional Standards. Comment period ends January 31, 2011. A marked version of the previous exposure draft shows the proposed changes.

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    Remember Broker-Dealer Annual Audit Requirements

    In a letter to the AICPA’s Stockbrokerage and Investment Banking Expert Panel, the Securities and Exchange Commission (SEC) outlined the existing requirements that apply when conducting the “review of the accounting system, the internal accounting control and procedures for safeguarding securities.” The requirements provide that broker-dealers must file an accountant’s report from a registered public accounting firm covering the annual financial statements and supporting schedules. Additional information and requirements can be found in the SEC’s letter and the AICPA Accounting and Auditing Guide Brokers and Dealers in Securities.

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    Treasury and SEC Leaders Comments Provide Insight into Financial Reform Actions

    As government agencies work to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, financial executives need to prepare for the resulting regulations and understand how implementation will affect their businesses. In this Business Brief, "Balancing Efficient Capital Markets and Investor Protection," Treasury Deputy Secretary Neal S. Wolin and Securities and Exchange Commission Commissioner Luis A. Aguilar provide an understanding of how they interpret the Act, outline the possible direction their agencies may take in implementing reform and describe the principles that guide them.

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    Health Care Reform Marketing Toolkit Materials Available

    To help you inform your clients or organization about what this legislation means for them, the AICPA has prepared the following: “Health Care Reform: A Primer for Organizations” (a downloadable brochure that provides an overview of key provisions of the legislation) and  “What Does Health Care Reform Mean for You” (a PowerPoint developed for you to present to the employees within your clients’ organizations or your own and which covers the important facts individuals need to know).

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    Get Your A&A Questions Answered by Those in the Know

    If you’re looking for a place to enhance your knowledge and application of professional judgment, then contact the Technical Hotline where a team of experts will guide you by phone or email. From accounting principles to financial reporting, and everything in between, the team answers thousands of calls each year. You also can contact the A&A Hotline by phone at 1.877.242.7212, 9:00 a.m. to 8:00 p.m., ET.

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