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USDA Requiring CPAs to Attest to AGI Limitations for Clients in Certain Farming Programs |
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The Farm Service Agency, within the U.S. Department of Agriculture (USDA), sent out letters on April 4 to those individuals and legal entities that receive payments through certain farming programs under the Food, Conservation and Energy Act of 2008. The act requires these program participants to prove they meet certain adjusted gross income (AGI) limitations to receive these benefits. CPAs who have clients participating in these farm programs have been asked to provide CPA attestation, among other things, verifying the participant's average AGI did not exceed the applicable limitations. The AICPA is engaged in understanding the broader implications of the USDA requests on members including possible legal liability and professional standards issues. We will continue to provide updates, but in the meantime, members are encouraged to follow their insurance provider's guidance. Additional information regarding the 2008 Farm Bill can be found on the USDA website.
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AICPA Submits Comment Letter on PCAOB Broker-Dealer Proposal |
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On Feb. 28, the Public Company Accounting Oversight Board (PCAOB) proposed amendments which would, among other things, require that all auditors of all broker-dealers follow PCAOB auditing, attestation, quality control and independence standards. The AICPA issued a comment letter stating that requiring auditors of non-public broker-dealers to follow PCAOB standards is not warranted until decisions on a final, permanent inspection program’s scope are reached. Until that time, the AICPA believes that the additional burden and costs of requiring a transition to new standards will be significant and, perhaps, ultimately unnecessary.
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Regulatory Alert: SEC Independence Requirements Apply to Auditors of Nonissuer Broker-Dealers and Investment Advisers |
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Auditors of nonissuer broker-dealers and investment advisers continue to be subject to certain Securities and Exchange Commission (SEC) independence requirements, including restrictions on financial and employment relationships, contingent fees and nonaudit services. Accordingly, such auditors should not perform bookkeeping services for these audit clients, including maintaining or preparing the client’s accounting records and financial statements unless it is reasonable to conclude that the results of the bookkeeping services will not be subject to audit procedures during the audit. For more information, refer to the AICPA Audit and Accounting Guide Brokers and Dealers in Securities and the AICPA, SEC and Public Company Accounting Oversight Board websites.
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CGMA Report Provides Guidance for Transforming the Finance Organization |
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The CGMA report, From ledgers to leadership: A journey through the finance function, analyzes some of the structural changes taking place across the different finance service areas. The report, based on global research from 2008 to 2011 with input from more than 7,000 finance and senior managers, highlights the expectations surrounding increasing finance staff across all finance services and discusses the impact of recent trends on the skills and competencies required to meet organizational strategic objectives. The research and subsequent report cites technical accounting skills as a foundation and preference for the professional finance qualification. However, the report also identifies areas for improvement and further development.
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TPA Issued on Compilation and Review Engagements |
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Technical Inquiry and Reply (TPA) 9150.29 has been issued on Accountant’s Considerations as Part of Compilation and Review Engagements When Management Does Not Perform the Required Variable Interest Entity (VIE) Assessment. The TPA describes that it is a departure from GAAP—not a refusal to provide information or a scope limitation—when management of an enterprise with a variable interest in a VIE does not perform the required assessment regarding whether the reporting entity has a controlling financial interest in the VIE (and, thus, is the VIE’s primary beneficiary), and instructs the accountant engaged to compile or review the reporting entity’s financial statements to not perform the assessment. The TPA also provides illustrations of the modifications that may be made to the accountant’s compilation or review report.
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Free Webinars Covering Tax and Financial Planning Topics |
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Catch Up on AICPA Insights |
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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. Interested in blogging for AICPA Insights?
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