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NEWS DIGEST

Auditing

 

November 2011

  AICPA staff issued TPA 9160.27, “Providing Opinion on a Schedule of Expenditures of Federal Awards [SEFA] in Relation to an Entity’s Financial Statements as a Whole When the Schedule of Expenditures of Federal Awards Is on a Different Basis of Accounting Than the Financial Statements.” Provided certain conditions are met, the auditor may provide an opinion on whether the SEFA is presented fairly in all material respects in relation to the financial statements as a whole (often referred to as providing an in-relation-to opinion).

The TPA is available at tinyurl.com/3so64k8. Member login is required.


  The AICPA’s Auditing Standards Board (ASB) issued Interpretation no. 1, “Dating the Auditor’s Report on Supplementary Information,” (tinyurl.com/3tehcdr) to SAS no. 119, Supplementary Information in Relation to the Financial Statements as a Whole (tinyurl.com/3ughlee). The ASB also issued three clarified Statements on Auditing Standards (SASs).

The interpretation to SAS no. 119 addresses how an auditor makes clear that no additional procedures were performed on the audited financial statements after the date of the auditor’s report on those financial statements when reporting on the supplementary information (either in a separate report or in an explanatory paragraph within the auditor’s report on the financial statements) after the date of the auditor’s report on the financial statements.

In addition, as a result of the ASB’s Clarity Project (tinyurl.com/3u62wdt), the following clarified SASs have been finalized:

  • Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements (Redrafted) (tinyurl.com/3lbtqyo) supersedes paragraphs .19–.21 of AU section 623, Special Reports (tinyurl.com/3vddpp5), in AICPA Professional Standards (tinyurl.com/3nnebzn) and is effective for reports on compliance issued in connection with audits of financial statements for periods ending on or after Dec. 15, 2012.
  • Letters for Underwriters and Certain Other Requesting Parties (Redrafted) (tinyurl.com/4xg9yxl) supersedes AU section 634, Letters for Underwriters and Certain Other Requesting Parties (tinyurl.com/42wqkr4), in AICPA Professional Standards and is effective for comfort letters issued on or after Dec. 15, 2012.
  • Interim Financial Information (Redrafted) (tinyurl.com/3thrb5n) supersedes AU section 722, Interim Financial Information (tinyurl.com/3t5dxmb), in AICPA Professional Standards and is effective for reviews of interim financial information for interim periods of fiscal years beginning on or after Dec. 15, 2012.

 

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