Audit Alerts 


    The AICPA produces a number of Alerts that provide auditors of financial statements with an overview of recent economic, industry, technical, regulatory, and professional developments that may affect the audits and other engagements they perform. Updated annually, alerts also help identify the significant business risks that may result in the material misstatement of a client's financial statements. Audit Risk Alerts also can be used by an entity’s internal management to address areas of audit concern.

    Financial Reporting Alerts are designed to be used by members of an entity’s financial management and audit committee to identify and understand current accounting and regulatory developments affecting the entity’s financial reporting, especially those that are the result of recent economic developments. They are intended to help you achieve a more robust understanding of the current economic environment in which your entity is operating and are an important tool to help you identify the significant risks that may result in the material misstatement of your entity’s financial statements.

    Auditing Guidance in AICPA Alerts are authoritative with respect to:
    • Audit Guidance in accordance with AU-C section 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards
    • Compilation and Review Guidance in accordance with AR section 60, Framework for Performing and Reporting on Compilation and Review Engagements
    • Attestation Guidance in accordance with AT section 50, SSAE Hierarchy
    Select a specific AICPA alert family, for more information.


    Audit Risk Alerts Compilation and Review Alerts Other Alerts Financial Reporting Alerts

    General Accounting and Auditing Developments

    Employee Benefit Plans Industry Developments

    Financial Institutions Industry Developments: Including Depository and Lending Institutions and Brokers and Dealers in Securities

    Government Auditing Standards and Circular A-133 Developments

    Health Care Industry Developments

    Insurance Industry Developments (including Life and Health Entities and Property and Liability Entities)

    Investment Companies Industry Developments

    Not-for-Profit Entities Industry Developments

    Real Estate and Construction Industry Developments

    State and Local Governmental Developments

    Understanding the Clarified Auditing Standards

    Understanding the Responsibilities of Auditors for Audits of Group Financial Statements

    Compilation and Review Developments


    Independence and Ethics Developments


    Current Accounting Issues and Risks for Financial Management and Reporting—2012/13 Financial Reporting Alert

    Not-for-Profit Entities—Accounting Issues and Risks



     

    Audit Alerts

    General Accounting and Auditing Developments


    The AICPA General Accounting and Auditing Developments Audit Risk Alert contains a summary of all of the substantive and primarily clarifying changes in the auditing standards from the Clarity Project.  This AICPA Audit Risk Alert helps you plan and perform your audits and can also be used by an entity’s internal management. It provides information to assist you in achieving a more robust understanding of the business, economic, and regulatory environments in which you or your clients operate. It is an important tool to help you identify the significant risks that may result in the material misstatement of financial statements.

    You will find new accounting and auditing guidance in this alert, in the areas of:

    • Fair Value Measurements
    • Comprehensive Income
    • Intangibles—Goodwill and Other
    • Property, Plant, and Equipment
    • Communication with Audit Committees

    This alert also includes information on emerging issues such as:

    • Recent Economic Trends
    • Recent Legislative and SEC Developments
    • FASB and IASB Convergence Projects
    • Committee of Sponsoring Organizations of the Treadway Commission (COSO)

    To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You’ll not only find targeted discussion of new developments and considerations, but also a look at what’s in the pipeline that may affect your engagements.

    Paperback

    Product# ARAGEN12P

    Online

    Product# WGE-XX

    eBook

    Product# ARAGEN12E

    Employee Benefit Plans Industry Developments


    Find out about important issues affecting Employee Benefit Plans and how these developments affect auditing in this industry. The AICPA Audit Risk Alert Employee Benefit Plans Industry Developments discusses fair value measurement, auditing fair value, and reporting on supplemental schedules and service organizations. This Alert also provides you with regulatory updates from the DOL as well as IRS and Treasury Department developments.

    New accounting and auditing guidance that are particularly significant to this alert and covered in just the right amount of detail include:

    • FASB Accounting Standards Update No. 2011-04, Fair Value Measurement
    • SAS No. 118, Other Information in Documents Containing Audited Financial Statements
    • SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole

    This alert also includes information on emerging issues such as:

    • ERISA Section 408(b)(2)
    • Changes in Report From SAS No. 70 to SSAE No. 16

    To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You’ll not only find targeted discussion of new developments and considerations, but also a look at what’s in the pipeline that may affect your engagements.

     

    Members interested in the companion AICPA Audit and Accounting Guide Employee Benefit Plans can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARAEBP12P

    eBook

    Product# ARAEBP12E

    Financial Institutions Industry Developments: Including Depository and Lending Institutions and Brokers and Dealers in Securities

    Find out about important issues affecting the financial institutions industry, including depository and lending institutions and brokers and dealers in securities, and how these developments affect auditing in this industry.  The AICPA Audit Risk Alert Financial Institutions Industry Developments discusses emerging practice issues and current economic, accounting, and auditing developments. This alert also provides you with regulatory updates for the FDIC, the Federal Reserve, the OCC, the NCUA, the SEC and the CFTC among others.

    New regulatory, accounting and auditing guidance and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include:

    • Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loan and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties
    • OCC Guidance on Accounting and Reporting Requirements for Troubled Debt Restructurings
    • FASB ASU No. 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution (a consensus of the FASB Emerging Issues Task Force).
    • The AICPA Clarity Project
    • SEC’s Division of Corporation Finance: Disclosure Guidance on Cybersecurity, European Sovereign Debt Exposures, and Smaller Financial Institutions

    This alert also includes information on emerging issues such as:

    • Proposed and final regulatory developments as result of the Dodd-Frank Wall Street Reform and Consumer Protection Act
    • U.S. implementation of Basel III
    • Proposed amendments to the SEC’s broker-dealer financial reporting rule included in SEC Rule 17a-5
    • PCAOB proposed auditing standards for broker-dealers

    To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You’ll not only find targeted discussion of new developments and considerations, but also a look at what’s in the pipeline that may affect your engagements.

    Members interested in the companion AICPA Audit and Accounting Guide Depository and Lending Institutions: Banks and Savings Institutions, Credit Unions, Finance Companies, and Mortgage Companies can purchase an online bundle of both the Alert and Guide at a discounted price.

     

    Paperback

    Product# ARADEP12P

    eBook

    Product# ARAEBP12E

    Government Auditing Standards and A-133 Circular Developments


    Find out about important issues affecting audits performed under Government Auditing Standards and Circular A-133, and how current developments affect these audits. This alert is intended to help you achieve a more robust understanding of the economic and business environment in which your entity operates and is also an important tool in helping you identify the significant risks that may result in the material misstatement of your entity’s financial statements.

    New auditing guidance that is particularly significant to auditors performing single audits is discussed in this alert:

    • 2011 revision of Government Auditing Standards, including an in-depth discussion of the new independence standard
    • Reporting on supplementary information under SAS No. 119
    • HUD Developments
    • Department of Energy 2011 For-Profit audit guide
    • The Clarity Project, including its impact on single audits

    This alert also includes information on emerging issues such as the OMB Advance Notice that was released in late February 2012.

    Members interested in the companion AICPA Audit and Accounting Guide Government Auditing Standards and Circular A-133 can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARAGAS12P

    eBook

    Product# ARAGAS12E

    Health Care Industry Developments

    The AICPA Alert Health Care Industry Developments provides information to assist you in achieving a more robust understanding of the issues you may be facing as an auditor or internal management of a Health Care Organization. This alert delivers information about emerging practice issues and current accounting, auditing, and regulatory developments, including developing issues which may have a significant impact on the industry in the near future.

    This alert discusses the accounting and auditing requirements pertaining to:

    • Key issues from the Health Care and Education Reconciliation Act of 2010 and the Protection and Affordable Care Act (ACA), including Accountable Care Organizations (ACOs), ICD-10 conversions, Electronic Health Records (EHR), and accounting for Medicaid EHR incentive payments
    • New and revised requirements under GASB Statement No. 61, The Financial Reporting Entity: Omnibus—an amendment of GASB Statements No. 14 and No. 34
    • Implementation of ASU No. 2011-07, Health Care Entities (Topic 954): Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities (a consensus of the FASB Emerging Issues Task Force)
    • Implementation of ASU No. 2010-24, Technical Corrections and Improvements
    • The Clarity Project of the Auditing Standards Board (ASB)

    Recently issued and effective accounting and auditing guidance that are particularly significant to this alert and covered in just the right amount of detail include the amendments in the following:

    • ASU No. 2012-05, Statement of Cash Flows (Topic 230): Not-for-Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows (a consensus of the FASB Emerging Issues Task Force)
    • ASU No. 2012-04, Technical Corrections and Improvements
    • ASU No. 2012-01, Health Care Entities (Topic 954): Continuing Care Retirement Communities—Refundable Advance Fees

    New accounting and auditing guidance that are particularly significant to this alert and covered in just the right amount of detail include:

    • GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27
    • GASB Statement No. 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25
    • GASB Statement No. 65, Items Previously Reported as Assets and Liabilities

    This alert also includes information on emerging issues such as:

    • Potential SEC Regulation of the Municipal Securities Market
    • Group Audits
    • Determining the Appropriate Reporting Framework (GASB or FASB)

    Members interested in the companion AICPA Audit and Accounting Guide Health Care Entities can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# AAGHCO12P

    eBook

    Product# AAGHCO12E

    Insurance Industry Developments (including Life and Health Entities and Property and Liability Entities)

    The AICPA Audit Risk Alert Insurance Industry Developments alert provides you with regulatory updates for the National Association of Insurance Commissioners (NAIC).

    New accounting and auditing guidance and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include:

    • FASB Accounting Standards Update No. 2010-26, and the related set of AICPA technical questions and answers on retrospective application
    • NAIC Actuarial Guideline (AG) 38
    • Update on the IASB and FASB Insurance Contracts Project
    • Update on the IASB and FASB Revenue Recognition Project and applicability to insurance entities
    • ASB clarity standards, including new format of auditor’s reports with an illustrative example for regulatory basis financial statements intended for general use

    This alert also includes information on emerging issues such as:

    • Audit and accounting considerations for the extended low interest rate environment
    • Complex estimates and significant measurement uncertainty related to property and liability claims and claims expense
    • Accounting for correction of an error under GAAP and SAP
    • Opinions on supplemental schedules
    • Pledged assets
    • GAAP Disclosures on Statutory Basis Information

    Members interested in the companion AICPA Audit and Accounting Guides Property and Liability Insurance Companies and Life and Health Insurance Entities can purchase an online bundle (Property and Liability, Life and Health) of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARAINS12P

    eBook

    Product# ARAINS12E

    Investment Companies Industry Developments

    The AICPA Audit Risk Alerts are developed to present issues that auditors may face in their current audits, focusing on emerging practice issues and current economic, accounting and auditing developments. Find out about important issues affecting investment companies and how these developments affect auditing in this industry. This Audit Risk Alert discusses emerging practice issues and current economic, accounting, and auditing developments. This alert also provides you with regulatory updates for the SEC and the CFTC among others.

    New regulatory, accounting and auditing guidance, and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include the following:
    • SEC Release No. IA-3372, Investment Adviser Performance Compensation
    • FASB ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
    • FASB ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities
    • The AICPA Clarity Project
    This alert also includes information on emerging issues such as the following:
    • Money market fund reform
    • Proposed and final regulatory developments as result of the Dodd-Frank Wall Street Reform and Consumer Protection Act
    • FASB and IASB joint project on investment companies
    • FASB and IASB joint project on consolidation
    • FASB and IASB joint project on revenue recognition
    To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You'll not only find targeted discussion of new developments and considerations, but also a look at what's in the pipeline that may affect your engagements.

    This alert is intended to be used in conjunction with Audit Risk Alert General Accounting and Auditing Developments—2012/13, which explains important issues that affect all entities in all industries in the current economic climate. General topics include recently issued guidance and emerging audit risks resulting from external economic factors.

    Members interested in the companion AICPA Audit and Accounting Guide Investment Companies can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARAINV12P

    eBook

    Product# ARAINV12E

    Not-for-Profit Entities Industry Developments

    Among other topics, the AICPA Audit Risk Alert Not-for-Profit Entities Industry Developments discusses risks related to recent NFP trends, going concern, related party, fair value, and consolidations issues. Also in this alert is a discussion of recent and planned IRS activity with regard to NFPs.

    New accounting and auditing guidance and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include:

    • SAS No. 118, Other Information in Documents Containing Audited Financial Statements
    • SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole
    • SAS No. 120, Required Supplementary Information
    • ASU No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses

    This alert also includes information on emerging issues such as:

    • Fair Value Considerations, including Gifts-in-Kind
    • IRS Exempt Organizations Activities
    • New Market Tax Credit Program Considerations
    • The FASB Not-for-Profit Advisory Committee Activity
    • Private Company Financial Reporting Update
    Members interested in the companion AICPA Audit and Accounting Guide Not-for-Profit Entities can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARANFP12P

    eBook

    Product# ARANFP12E

    Real Estate and Construction Industry Developments

    The AICPA Audit Risk Alert Real Estate and Construction Industry Developments focuses on current and emerging practice issues and current economic, accounting and auditing developments affecting real estate ventures and construction contractors and those who audit those entities.

    This AICPA Audit Risk Alert helps you plan and perform your audits and also can be used by an entity’s internal management. It is an important tool to help you identify the significant risks that may result in the material misstatement of financial statements.

    New accounting and auditing guidance and exposure drafts that are particularly significant to this alert include:

    • FASB ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income
    • FASB ASU No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment
    • FASB ASU No. 2011-09, CompensationRetirement BenefitsMultiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan
    • FASB ASU No. 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estatea Scope Clarification (a consensus of the FASB Emerging Issues Task Force)
    • FASB ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05
    • ASU No. 2012-02, IntangiblesGoodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment
    • Proposed Accounting Standards Update (Revised) Revenue Recognition (Topic 605): Revenue from Contracts with Customers (including proposed amendments to the FASB Accounting Standards Codification®)
    • Proposed Accounting Standards Update Leases (Topic 840)
    • Proposed ASU Financial ServicesInvestment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements
    • Proposed ASU Real EstateInvestment Property Entities (Topic 973)

    Members interested in the companion AICPA Audit and Accounting Guide Construction Contractors can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARACON12P

    eBook

    Product# ARACON12E

    State and Local Governmental Developments

    The AICPA Audit Risk Alert State and Local Governmental Developments focuses on emerging practice issues, such as recent changes in the municipal securities market, and current economic, accounting and auditing developments and how these areas affect state and local governments.

    New accounting and auditing guidance that are particularly significant to this alert and covered in just the right amount of detail include:

    • GASB Statement No. 66, Technical Corrections—2012—an amendment of GASB Statements No. 10 and No. 62
    • GASB Statement No. 65, Items Previously Reported as Assets and Liabilities
    • GASB Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions —an amendment of GASB Statement No. 53
    • GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

     

    This alert also includes information on emerging issues such as:

    • Implementing New Requirements for Supplementary Information and Other Information in Audits of State and Local Governments
    • Special Purpose Frameworks
    • Group Audits
    • Disclosure in Official Statements Regarding an Issuer's Pension Funding Obligations
    • New and Revised Requirements Under GASB Statement No. 61, The Financial Reporting Entity: Omnibus
    • Determining the Appropriate Reporting Framework.
    Members interested in the companion AICPA Audit and Accounting Guide State and Local Governments can purchase an online bundle of both the Alert and Guide at a discounted price.

    Paperback

    Product# ARASLG12P

    eBook

    Product# ARASLG12E

    Understanding the Clarified Auditing Standards

    With the release of Statement on Auditing Standards (SASs) Nos. 122-125, the Auditing Standards Board (ASB) has substantially completed its project to redraft all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). The issuance of the clarified standards reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply. Among other improvements, the objectives of the auditor and the requirements with which the auditor has to comply when conducting an audit in accordance with generally accepted auditing standards (GAAS) are now specified more clearly.

    The AICPA has developed this Audit Risk Alert, Understanding the Clarified Auditing Standards, to build awareness and to inform auditors of the changes and effects the clarified standards will have on audit practices and methodologies, including the changes that may affect the reports of certain audited financial statements.

    This alert provides an introduction to the background and implications of the clarity project and presents a schedule mapping the existing standards to the clarified standards.  Auditors will need to make some adjustments to their practices as a result of the requirements of the clarified standards, and this alert addresses how an auditor may start planning for these changes.

    The alert discusses the following in just the right amount of detail:

    • The issuance of the clarified standards
    • How to prepare for the transition
    • The summarized changes in requirements from SAS Nos. 1-121 to the clarified SASs

    With a close look at the changes brought about by the new clarified standards, the auditor will be able to review the changes in a concise format and identify those areas that may affect their specific clients. This alert highlights the changes from the existing standards and has been ordered to provide the auditor with a glimpse of those requirements that may need to be addressed early.

    Members interested in the companion Codification of Statements on Auditing Standards, which contains the clarified auditing standards can purchase an online bundle of both the Alert and Codification at a discounted price.

    Paperback

    Product# ARACLA12P

     

    Online

    Product# ARACLA12O

     

    eBook

    Product# ARACLA12E

    Understanding the Responsibilities of Auditors for Audits of Group Financial Statements

    This Audit Risk Alert is intended to help auditors understand and implement the requirements of Clarified Statement on Auditing Standards – Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) (AICPA, Professional Standards, AU-C section 600), which supersedes SAS No. 1, AU section 543, Part of Audit Performed by Other Independent Auditors (AICPA, Professional Standards, AU section 543) and paragraphs 12-13 of SAS No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards, AU section 508, par. 12-13).  The purpose of this Audit Risk Alert is to provide guidance on implementing AU-C section 600.

    Group audits involve the audit of financial statements that include the financial information of more than one component (group financial statements).  Statement on Auditing Standards – Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) (codified as AU-C section 600 of the same name) expands previous guidance related to using the work of other auditors to encompass audits of group financial statements.  The new standard introduces a number of new terms, concepts, and requirements related to group audits that will significantly affect current practice.  Because the new standard is much broader than previous guidance and is effective for audits of group financial statements for periods ending on or after December 15, 2012, it is important for auditors to fully understand the requirements of the new standard well in advance of its effective date.

    To assist auditors in implementing the provisions of the standard, this alert includes a variety of useful resources including:

    • Questions and Answers
    • A discussion of applicability
    • A discussion of terminology
    • A discussion of how practice will be affected
    • Special considerations for state and local governments
    • Several case studies

    Paperback

    Product# ARAGRP12P

     

    Online

    Product# ARAGRP12O

     

    eBook

    Product# ARAGRP12E





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