American Institute of Certified Public Accountants (AICPA)
Website: www.aicpa.org
The AICPA represents the CPA profession nationally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the profession’s technical and ethical standards.
Recent Developments – Past 90 days
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AICPA issues practice aid: Establishing and maintaining a system of quality control for a CPA firm’s accounting and auditing practice
AICPA - 09/07/2016
This AICPA Audit and Accounting Practice Aid updates Establishing and Maintaining a System of Quality Control for a CPA Firm’s Accounting and Auditing Practice, which was issued in 2011. It is designed to help small- and medium-sized firms better understand and apply Statement on Quality Control Standards (SQCS) No. 8, A Firm’s System of Quality Control (Redrafted) (AICPA, Professional Standards, QC sec. 10).
AICPA updates learning and implementation plan for new revenue recognition standard
AICPA - 09/07/2016
This document focuses on the guidance in ASU No. 2014-09; the AICPA Financial Reporting Brief: Roadmap to Understanding the New Revenue Recognition Standard highlights the differences between the standards issued by FASB and the IASB.
AICPA updates financial reporting brief: Roadmap to understanding the new revenue recognition standards
AICPA - 09/07/2016
The Financial Reporting Brief reorganizes the guidance contained in FASB ASC 606 (revenue recognition standard), to follow the five step revenue recognition model along with other guidance impacted by this standard. Additionally, it highlights differences between FASB ASC 606 and IFRS 15, and provides reference to applicable examples in the implementation guidance.
AICPA publishes snapshots related to crowdfunding and small securities issuers
AICPA - 05/25/2016
The SEC issued final rules on two features of the JOBS Act: Crowdfunding (effective May 2016) and Regulation A+ (effective June 2015). The AICPA has published the following snapshots which provide a high level summary of these rules: equity crowdfunding and small securities issuer.
New Leases Accounting Standard—Learning and Implementation Plan
AICPA - 04/04/2016
New Leases Accounting Standard – Learning and Implementation Plan focuses on the guidance contained in the FASB Accounting for Leases ASU and provides a roadmap for understanding and implementation.
Exposure Drafts
AICPA proposes changes to Standards for Performing and Reporting on Peer Reviews
AICPA - 08/17/2016
The AICPA is seeking comment on proposed changes to the AICPA Standards for Performing and Reporting on Peer Reviews. The proposed changes (1) modify the illustrative peer review reports for System Reviews to specifically state that a single audit was selected and reviewed in the scope of a peer review, if applicable and (2) modify the firm representation letter to identify the performance of must-select engagement(s) by the firm and the selection and review of such must-select engagements in the scope of the peer review.
Comments on the expsure draft are requested by September 30.
ARSC proposes technical correction of review of financial statements
AICPA – 07/06/2016
The AICPA Accounting and Review Services Committee (ARSC) issued an exposure draft, Proposed Statement on Standards for Accounting and Review Services (SSARS), Amendment to Statement on Standards for Accounting and Review Services No. 21 Section 90, Review of Financial Statements. The proposed SSARS reflects a technical correction of AR-C section 90. AR-C section 90 includes requirements and guidance when supplementary information accompanies reviewed financial statements and the accountant’s review report thereon. ARSC determined that certain revisions were necessary to correct the requirements and guidance related to reporting on supplementary information.
Comments on the exposure draft are requested by September 2.
AICPA issues exposure draft on standards for performing and reporting on peer reviews
AICPA - 06/01/2016
The AICPA issued proposed changes to the standards for performing and reporting on Peer Reviews. The proposed changes (1) allow firms with no AICPA members to enroll in the AICPA Peer Review Program, (2) expand the availability of administration by the National Peer Review Committee, and (3) include other minor changes.
Comments on the proposal are requested by August 26.
AICPA issues proposed audit data standard related to inventory subledger
AICPA - 05/16/2016
The AICPA’s Assurance Services Executive Committee published an exposure draft that is intended to accommodate basic analysis of the inventory process as part of an audit, as well as analysis that might be performed by company staff and internal audit in order to improve internal processes.
Comments on the exposure draft are requested by August 15.
AICPA Ethics Division proposes hosting services interpretation
AICPA - 05/16/2016
The AICPA’s Professional Ethics Executive Committee (PEEC) published an exposure draft of a proposed independence interpretation of the AICPA’s Code of Professional Conduct (Ethics Code), Hosting Services . The interpretation is intended to provide guidance to practitioners on providing hosting services to clients and describes certain hosting services which may impair independence.
Comments on the exposure draft are requested by July 18.
PwC comment letters
PwC comments on AICPA’s proposed standard on going concern
AICPA - 09/02/2016
PwC supports the proposed standard to clarify the auditor’s responsibility when assessing going concern.
PwC comments on the AICPA's proposed amendment to AU-C 700
AICPA - 09/30/2015
PwC supports requiring the PCAOB report layout and wording when referring to both PCAOB and AICPA standards.
PwC comments on proposed revision to the AICPA Trust Services Principles
AICPA - 09/16/2015
PwC supports the proposed revisions to Trust Services Principles, and offers some recommendations for consideration.
