A
new blue-ribbon panel is poised to take on the issue of whether
separate accounting standards are needed for private companies.
The
AICPA and the Financial Accounting Foundation, FASB’s parent
organization, have launched the panel charged with making
recommendations on the future of standard setting for private
companies. The National Association of State Boards of Accountancy is
also a sponsor of the panel, which will be chaired by Rick Anderson,
chairman and CEO of Seattle-based Moss Adams LLP (see “Minding the
GAAP,” an interview with Anderson, on page 22).
The AICPA’s Auditing Standards Board (ASB) voted to release a
standard that addresses reports on the description, design and
operating effectiveness of controls related to outsourced services
ranging
from assisting with processing transactions to performing one or
more business functions.
The standard will amend and replace the current U.S. standard for audits of service organizations, Statement on Auditing Standards no. 70 (AU section 324), Service Organizations. At this writing, the PCAOB, which adopted AU section 324 as an interim standard, subject to additional guidance in Appendix B, paragraphs 17–27 in PCAOB Auditing Standard no. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements, had not indicated whether it intends to modify its guidance.
The ASB worked closely with the International Auditing and Assurance Standards Board (IAASB) on this project, according to Charles E. Landes, AICPA vice president–Professional Standards and Services. The IAASB version, International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization, was issued in December and is effective for service auditors’ reports covering periods ending on or after June 15, 2011.
The JofA’s Web site now has a page devoted to the latest news
and analysis about International Financial Reporting Standards. Find
it at journalofaccountancy.com/Web/IFRS.htm.
The page also offers practical tips, background information and
videos.
And for more on IFRS training and publications, visit the AICPA-produced ifrs.com.
