(cross post from ulvog.wordpress.com)
“My will shall shape my future. Whether I fail or succeed shall be no man’s doing but my own. I am the force; I can clear any obstacle before me, or I can be lost in a maze. My choice, my responsibility, win or lose, only I hold the key to my destiny. ”
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The GAO has proposed changes to the Yellow Book in circulation. The Journal of Accountancy has a great article here.
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A previous post discussed the new option in SSARS 19 to provide the reasons for the accountant’s lack of independence in a compilation. Here is a poll to see how readers of this blog plan to handle this new option.
Please vote and then click “see results” to see how others replied.
[polldaddy poll=4334263]
An option to disclose the reasons for a lack of independence when performing a compilation has been introduced by SSARS 19. Now the accountant can explain in the report why independence is impaired. Previously, the accountant could not provide any explanation for lack of independence.
Here are some examples along with a rather important condition.
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Option to explain reasons for lack of independence in SSARS 19 compilationRead More »
If you’ve been having reservations about the train that is heading full steam down the IFRS track, here are a couple of posts from an IFRS critic to increase your concerns .
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What is Repo 105? That is the accounting issue behind the lawsuit against Ernst & Young by the New York Attorney General over the Lehman collapse. For a great explanation (with great illustrating spreadsheets), check out an article by Professor David Albrecht, Repo 105 Explained With Numbers and Detail.
Summary of his article …
The perfect time to launch your dream, start that new ministry program, get a degree, or learn social media will never arrive. Conditions will never be right. So may as well get started now. Seth Godin explains much more eloquently –
@ThisIsSethsBlog Maybe next year… http://bit.ly/esxKRN
Perhaps Lehman is the target, and not the Big 4 firm.
That at least is the speculation of The Economist, in their article here. …
Who is the real target in the lawsuit against Ernst & Young?Read More »
Omission of cash flow statement– Compilation reports will change for organizations with fiscal years ending after December 15, 2010. Here is the modified report I will be using after the first of the year for my non-profit clients if any would choose to omit the statement of cash flow. I doubt that will happen in my client base, but wanted to make this example available to the CPA community.
Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:
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SSARS 19 – Sample compilation report for omitting the statement of cash flowRead More »
Omission of substantially all disclosures — Compilation reports will change for organizations with fiscal years ending after December 15, 2010. I have prepared a modified report for departure from GAAP. Here is the report I will be using after the first of the year for my non-profit clients if any choose to omit all disclosures. Please feel free to copy, but make sure you modify this based on your firm’s policies.
Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:
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SSARS 19 – Sample compilation report for omitting substantially all disclosuresRead More »
The New York AG has sued Ernst & Young over its role in the collapse of Lehman Brothers. Probably a good time for those of us CPAs who are far removed from the Big 4 world to start paying attention. The article in the Wall Street Journal here is a good place to start. The articles I’ve read at the WSJ and elsewhere are starting to have those “where were the auditors” type of questions. I know you don’t have enough things to do, but might be worth reading a few articles on point.
Banks and other lenders are under a lot of pressure from their auditors and regulators. That means your clients will be under more pressure from lenders. Checking for compliance with loan covenants is getting more important.
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Impact of loan covenant violations on your audit or reviewRead More »
What in the world are unconditional requirements and presumptively mandatory requirements?
If you provide audits to your clients, you know those terms. If you don’t deal with audits in your firm, these are two very weird terms in the SSARSs world, newly introduced by SSARS 19. These phrases have been around since SSARS 16, which was effective December 2007. The impact hadn’t been that large because there was only SSARS 17 and 18. These two phrases are lots more important since they show up in SSARS 19 quite frequently.
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If you want a great summary of all the changes from SSARS 19, the Journal of Accountancy has a great article here from the May 2010 magazine.
cross-post from www.ulvog.wordpress.com.
SSARS 19, which goes into effect the end of 2010, specifies titles and addressing for compilation and review reports.
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