One of the changes made by SQCS 7 is that the documentation of the quality control system must be in writing.
Previously the extensive documentation depended on the nature of the firm. In a smaller firm with relatively simple procedures it did not necessarily have to be in writing. That has changed. You must have something written down.
How to proceed? Three ideas.
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Quality control system documentation must be writtenRead More »
(cross posted from www.ulvog.wordpress.com)
I have discussed the differences between audits, reviews, and compilations here and here. Even developed a visual illustration here. Ask any CPA and you can get a long explanation of the distinctions.
For something shorter, consult this article by Angus Loten in the Wall Street Journal, which said:
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One sentence explanation of the difference between audits and reviewsRead More »
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 »
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Update – SSARS 19 had been replaced by SSARS 21.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 »
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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If you prepare compiled financial statements for management use only (which means the reports will not be going to third parties), you will be glad to know the new SSARS 19 document includes the guidance that used to be in SSARS 8. Let me describe some of the provisions. …
As CPAs, we look for creative ways to persuade our clients to implement good internal controls. I fear that our comments as CPAs usually fade along with all the other you-gotta’-do-this-now messages in our regulatory heavy culture. Another approach is to explain the devastation that arises from fraud. I have a new post at my other blog that takes this approach: The tragedy of fraud. …
A creative way to communicate fraud prevention to your clientsRead More »
Greetings, and welcome to my new blog. I am still blogging at Nonprofit Update, found at www.ulvog.wordpress.com. Why the new site? I am talking to two very different audiences: the nonprofit community and CPAs working in the attestation area. Thus, I will split my writing between two different blogs.
Many of the previous posts of interest to CPAs have been brought into this blog. Some of these posts are deleted from the other blog and some are left there. In the future, posts related to the NPO world will be at www.ulvog.wordpress.com, comments specific to the CPA community will be here, and comments of interest to both will be cross-posted.
I hope this will be of help as you keep up to date with the torrent of changes in the attestation world. Enjoy!
Review reports will change starting December 31, 2010. Two sample reports follow.
Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:
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Compilation reports will change starting December 31, 2010. Some sample reports follow.
Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. See:
…