The AICPA has issued nonauthoritative guidance in five Technical Question and Answer (TPA) releases, which are available on the AICPA website.
TPA 9110.22 provides guidance for auditors when an entity’s financial statements are audited in accordance with generally accepted auditing standards and Government Auditing Standards.
When both standards are used, an auditor may include a restricted alert paragraph as long as the compliance report is not required to be issued in accordance with and does not refer to Government Auditing Standards. The restricted alert paragraph should use the language required by AU-C Section 905, Alert That Restricts the Use of the Auditor’s Written Communication.
TPA 9110.23 states that based on the facts in TPA 9110.22, the auditor does not need to modify the illustrative report language to indicate that the financial statement audit also was conducted in accordance with Government Auditing Standards. The auditor could refer only to the audit being conducted in accordance with auditing standards generally accepted in the United States of America.
TPA 9110.21 states that the auditor may accept an engagement to report on current-value financial statements that supplement historical-cost financial statements if certain conditions exist. The auditor may report on such current-value financial statements in a manner similar to that discussed in AU-C Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks.
Two additional TPAs have been included as paragraphs .40 and .41 of TIS Section 8800, Audits of Group Financial Statements and Work of Others. These TPAs regard the implementation of AU-C Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).
The additional TPAs address questions that have arisen from
implementation issues, particularly regarding variable-interest
entities and the component’s use of a basis of accounting that differs
from that of the group.
