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February 26, 2013 |  BY Ken Tysiac |  Article

A much awaited summary of provisional findings of the U.K. Competition Commission (CC) stated that companies are reluctant to change auditors because they have difficulty comparing alternatives with their existing auditor, prefer continuity, and face significant costs in switching auditors. In addition, the provisional findings, released Friday, stated that instead of protecting investors’ interests, auditors often focus on meeting the needs of senior management who are the key decision-makers on whether to retain their services.

January 20, 2013 |  BY Ken Tysiac |  Article

The AICPA Accounting and Review Services Committee (ARSC) has voted to withdraw its compilation and association exposure draft in response to comment letters from stakeholders. The compilation proposal would have revised the applicability of the compilation standard but would have retained the compilation service as an attest service.

November 18, 2012 |  BY Ken Tysiac |  Article

The AICPA Accounting and Review Services Committee (ARSC) has exposed for public comment proposed Statements on Standards for Accounting and Review Services (SSARS) as part of its clarity project. ARSC has separated the proposals in an attempt to make the clarified standards easier to use, understand, and implement.

November 1, 2012 |  Article

Two AICPA committees extended comment deadlines to Nov. 30 on recently proposed revisions to professional standards. The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence.

August 28, 2012 |  Article

Two AICPA committees are extending comment deadlines to Nov. 30 on recently proposed revisions to professional standards. The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence.

August 1, 2012 |  Article

The AICPA issued technical guidance on emphasis paragraphs in the auditor’s reports and on independence impairment in compilation reports. Technical Inquiry and Reply (TPA) 9160.28 regards combining going-concern emphasis with another emphasis-of-matter paragraph. This TPA explains that although AU Section 508, Reports on Audited Financial Statements (AICPA, Professional Standards), does not preclude an auditor from combining matters either required to be emphasized or added at the auditor’s discretion, in the auditor’s report, it may be prudent for the auditor to emphasize each matter separately in separate paragraphs.

August 1, 2012 |  BY Mike Glynn, CPA and Ellen Goria, CPA |  Article

In accordance with recently proposed revisions to professional standards, CPAs who prepare financial statements for clients would consider that a nonattest bookkeeping service and would no longer be required to perform a compilation service with respect to those financial statements unless engaged to do so. The changes, proposed in June by two AICPA committees, would require CPAs who prepare financial statements, but are not engaged to perform a compilation, review, or audit, to request that management include a label or notation that makes clear that the financial statements were not compiled, reviewed, or audited.

June 15, 2012 |  Article

The AICPA has issued technical guidance on emphasis paragraphs in the auditor’s reports and on independence impairment in compilation reports. Technical Inquiry and Reply (TPA) 9160.28 regards combining going-concern emphasis with another emphasis-of-matter paragraph. This TPA explains that although AU Section 508, Reports on Audited Financial Statements (AICPA, Professional Standards), does not preclude an auditor from combining matters either required to be emphasized, or added at the auditor’s discretion, in the auditor’s report, it may be prudent for the auditor to emphasize each matter separately in separate paragraphs.

August 25, 2011 |  Article

The PCAOB said it will host a public round table on Thursday, Sept. 15, to discuss its concept release on possible changes to the auditor’s reporting model. The board issued a discussion paper for the meeting. The board said in a press release that the purpose of the meeting is to obtain insight from investors and other financial statement users, preparers of financial statements, audit committee members and auditors on the alternatives presented in the concept release for changing the auditor’s report.

May 1, 2011 |  Article

The AICPA Audit and Attest Standards Team has provided guidance, available on aicpa.org, regarding how an accountant should report when comparative financial statements are presented and the prior-year compilation or review was not performed in accordance with Statement on Standards for Accounting and Review Services no. 19, Compilation and Review Engagements (AICPA, Professional Standards, vol.