Financial Reporting and the COVID-19 Pandemic
In the world of generally accepted accounting principles (GAAP), the term “triggering event” had been a subtle classification, or at least one that was difficult to clearly identify. Henceforth, there will be few events more worthy of the mantle “triggering event” than COVID-19. Beyond the countless scary and burdening consequences of a pandemic, there are most definitely significant issues to financial reporting – perhaps even going concern questions.
Red Flags for Nonprofit CPAs
CPAs working for or serving on the board of a nonprofit organization will likely be the most business-savvy person on the leadership team. As such, you can add critical value by assessing performance results and identifying troubling trends as they develop. This requires a CPA to look beyond the numbers by integrating financial and nonfinancial data to uncover serious threats before they become crises.
Catching Up on Developments in the Single Audit Sphere
Uniform guidance became effective December 26, 2014. We did the first round of audits with the December 2015 year-ends. The government tends to relook at things in five years, so they put out a draft of changes they wanted to make. That came out on January 22. Everyone had until March 23 to respond to these revised changes and the AICPA responded with a pretty lengthy letter of things that they were questioning about the changes. We haven't heard anything since, with COVID-19 coming up.