Auditing


The auditing standards board issues SAS no. 97, Amendment to Statement on Auditing Standards (SAS) no. 50, Reports on the Application of Accounting Principles. The new statement (see Official Releases, page 90), which is effective for written reports issued or oral advice provided on or after June 30, amends SAS no. 50 to prohibit an accountant from providing a written report on the application of accounting principles not involving facts and circumstances of a specific entity. Copies of the SAS (product no. 060699JA) can be ordered from the AICPA at 888-777-7077.

The AICPA audit and attest standards team provides guidance on the applicability of SSARS no. 1, Compilation and Review of Financial Statements ( www.aicpa.org/members/div/auditstd/interp_ar_9100.htm ), for accountants in public practice who perform controllership or other management services (see Official Releases, Jul.02, page 92). Interpretation no. 21 addresses situations in which those services involve financial statement submission.

In SOP 02-1, Performing Agreed-Upon Procedures Engagements That Address Annual Claims Prompt Payment Reports as Required by the New Jersey Administrative Code, the auditing standards board presents recommendations on the application of statements on standards for attestation engagements to agreed-upon procedures engagements performed to comply with New Jersey regulations relating to health and dental benefit plan claims payment reports. Those provisions apply to health, medical, dental or hospital service corporations, insurance companies and HMOs that issue such plans in the state and to the agents, employees or other representatives of entities that process claims for them (see Official Releases, page 92). Copies of the SOP (product no. 014934JA) can be ordered from the AICPA at 888-777-7077.

The auditing standards board releases a proposed Statement on Auditing Standards, Auditing Fair Value Measurements and Disclosures ( www.aicpa.org/members/div/auditstd/fair_value.htm ). The ED discusses auditing issues relating to measurement, presentation and disclosure of assets, liabilities and specific components of equity presented or disclosed at fair value in financial statements. Comments are due August 28.

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