Information security & privacy

The AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) no. 102, Defining Professional Requirements in Statements on Auditing Standards, and Statement on Standards for Attestation Engagements (SSAE) no. 13, Defining Professional Requirements in Statements on Attestation Engagements, which apply to audit and attestation engagements performed for nonissuers

The AICPA Professional Ethics Executive Committee (PEEC) adopted two ethics rulings that provide guidance on how members’ offer or acceptance of gifts or entertainment to or from clients, customers or vendors of their employer affects the members’ independence and objectivity ( www.aicpa.org/download/ethics/ ). The ethics rulings under Rule 101, “Independence,”

The European Commission (EC) adopted a regulation endorsing the amended International Accounting Standard (IAS) no. 39, Financial Instruments: Recognition and Measurement, also known as the fair value option ( http://europa.eu.int/comm/internal_market/accounting/ias_en.htm ). The regulation endorses the fair value option, which previously had been carved out of the EC’s endorsement of IAS

Following the resignation of William J. McDonough, the SEC appointed William D. Gradison Jr. acting chair of the PCAOB and adopted new procedures for SEC Chairman Christopher Cox to use in filling the position. Gradison is a founding member of the PCAOB. The PCAOB selected Thomas Ray to succeed Douglas

FASB issued Staff Position (FSP) FIN 45-3, Application of FASB Interpretation No. 45 to Minimum Revenue Guarantees Granted to a Business or Its Owners, which amends Interpretation no. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others ( www.fasb.org/fasb_staff_positions/fsp_fin45-3.pdf ). The FSP clarifies that

The Federal Deposit Insurance Corporation (FDIC) issued advance notice of a proposed rule that would make it easier to ascertain whether FDIC insurance covered deposits in banks with more than 250,000 customer accounts and $2 billion in domestic deposits ( www.fdic.gov/news/news/press/2005/pr12205.html ). The last time the FDIC updated its deposit

The Treasury Department and the IRS released Notice 2005-86, which clarifies that an individual participating in a flexible spending arrangement (FSA) is ineligible to contribute to a health savings account (HSA) during an FSA grace period, which extends the covered expense eligibility time frame up to 2 months into the

The Governmental Accounting Standards Board (GASB) added a volume to its User Guide series for nonaccountants. What Else You Should Know about a Government’s Finances: A Guide to Notes to the Financial Statements and Supporting Information explains how to assess a state or local government’s financial health and is available

The profession’s image remains bright among business decision makers, executives and investors who gave CPAs favorable ratings of 97%, 95% and 89%, respectively, in a recent survey. Significantly, among business decision makers and executives, CPAs ranked several points higher than physicians, insurance agents, bankers, chief management consultants and stock research

The Treasury Department and IRS issued Notice 2005-42, which allows employers to modify flexible spending arrangements (FSAs) to extend the deadline for reimbursement of health and dependent care expenses up to 2.5 months after the end of the plan year ( www.treas.gov/press/releases/reports/n0542.pdf ). Previously, employees forfeited any FSA funds they

The Public Company Accounting Oversight Board (PCAOB) issued guidance in the form of questions and answers (Qs & As) for auditors ( www.pcaobus.org/standards/staff_questions_and_answers/index.asp ). They concern attest engagements relating to information that companies furnish under the SEC’s XBRL Voluntary Financial Reporting Program on the EDGAR system ( www.sec.gov/spotlight/xbrl.htm ). The

SEC Chairman William H. Donaldson resigned on June 30, 2005, more than two years after President George W. Bush appointed him to the post. At press time, the president had nominated Rep. Christopher Cox (R-Calif.) as Donaldson’s successor, subject to confirmation by the Senate. The AICPA governing council approved a

The International Accounting Standards Board (IASB) issued a single-volume edition of its official pronouncements made through January 1, 2005 ( www.iasb.org/uploaded_files/documents/ ). International Financial Reporting Standards (IFRSs) Bound Volume 2005 provides the complete consolidated text of the latest version of IFRSs (including international accounting standards and interpretations) and the supporting

The Financial Accounting Standards Board (FASB) issued Statement no. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion no. 20 and FASB Statement no. 3 ( www.fasb.org/pdf/fas154.pdf ). It applies to all voluntary changes in accounting principle and to changes required by an accounting pronouncement if the pronouncement

The Federal Trade Commission (FTC) issued as final a rule that, as of June 1, 2005, requires businesses and individuals to judiciously dispose of sensitive information from consumer reports ( www.ftc.gov/opa/2005/06/disposal.htm ; www.ftc.gov/os/2004/11/041118disposalfrn.pdf ). The standard, known as the Disposal Rule, is part of the Fair and Accurate Credit Transactions

For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The AICPA Accounting and Review Services Committee issued a revised illustrative representation letter for review engagements ( www.aicpa.org/members/div/auditstd/revision_of_appendix_f.htm ). The revisions

The AICPA introduced educational resources designed to improve CPAs’ ability to help their clients and employers manage privacy-related risks. Understanding and Implementing Privacy Services: A CPA’s Resource (paperback with CD-ROM, product no. 056509JA) and “Privacy Issues for Business: Whose Information Is It Anyway?” (CD-ROM, no. 780005HSJA) are available at www.cpa2biz.com