AICPA releases Q&A on required supplementary information

By Ken Tysiac

The AICPA has issued a Q&A to provide nonauthoritative guidance to auditors regarding independence requirements with respect to required supplementary information.

Question and Answer (Q&A) Section 9180.01 addresses the situation when required supplementary information accompanies financial statements subject to an audit, and that required supplementary information extends to historical prior periods (back periods) in which the auditor did not perform an engagement that required independence.

The Q&A states that the auditor is not required, for the purposes of complying with AU-C Section 730, Required Supplementary Information, to be independent of the entity in back periods as long as the auditor’s opinion does not cover required supplementary information.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

SPONSORED WHITE PAPER

Preparing the statement of cash flows

This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process.

RESOURCES

Keeping you informed and prepared amid the COVID-19 crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.