Professional Issues


The AICPA Peer Review Board issued revised standards for performing and reporting on peer reviews, as well as revised and new interpretations that will help CPAs understand how to apply the standards. Both are effective for reviews beginning after December 31, 2004; early implementation is not permitted ( www.aicpa.org/members/ ). The changes cover the provisions on transparency of reporting, enhanced risk-based approach for system reviews, and type and timing of engagement selection. The board also issued a white paper on the background and basis for its conclusions.

The National Association of State Boards of Accountancy (NASBA) issued model rules for state boards that, if adopted, will require public accounting firms to submit to their state licensing boards adverse quality control reviews of their operations ( www.nasba.org/nasbafiles.nsf/lookup/july2004revisedrules/ ). The rules also would require individual CPAs to notify the boards of civil charges against them for fraud, violation of practice standards or misappropriation of funds. The model rules represent best practices NASBA recommends to all state boards, based on measures some already have adopted, as well as issues addressed in the Sarbanes-Oxley Act of 2002.

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.

FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.