The effective implementation date of ASC 842 for private companies is Jan.1, 2022, and these companies and their CPAs simply are not ready. The PICPA’s Accounting and Auditing Steering Committee has petitioned the FASB for a two-year deferral of the effective date of ASC 842 , but we need your input, and we need it today!

The U.S. Employee Benefit Security Administration (EBSA) Office of the Chief Accountant (OCA) is about to undertake a study to assess the quality of audit work with respect to financial statement audits of employee benefit plans for the 2020 Form 5500 filing year. Plan administrators and independent qualified public accountant firms need to be ready.

Medical marijuana sales are on the rise and you may be thinking about taking on clients associated with this industry. Before you do anything, you must understand the industry is complex with many regulations.

The root cause of fraud and noncompliance with regulations stems from an organization’s culture. Each organization’s leadership must ensure that the right tone at the top is conveyed and a strong ethical culture is promoted.

COVID-19 has created significant financial statement challenges. Auditors and financial statement preparers need to ensure that the financial statements and related footnote disclosures are fairly presented within the scope of the pandemic and its effects.

The AICPA Peer Review Board has been extremely flexible in permitting peer reviews to be performed offsite and automating extensions. But there are many issues to consider. The PICPA's "Navigating Peer Review in 2020" highlights many 2020 administrative and logistical issues.

With Q&A 3200.18: Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program, the AICPA provides important accounting guidance for entities that expect to meet the Paycheck Protection Program (PPP) eligibility criteria and have the loan forgiven.

Allison Henry, PICPA vice president of professional and technical standards, provides a video update and guidance on recent lease accounting, revenue recognition, and ethics announcements related to COVID-19 from the FASB and AICPA.

To combat the economic fallout from the COVID-19 pandemic, the federal government is attempting to push out about $350 billion in loans to eligible businesses. This unprecedented opportunity has CPAs scrambling to help their clients fill out the application and provide the supporting information. Caution is needed, however. You must make sure that you do not cross the independence line.

Among all the difficulties the COVID-19 outbreak has thrust on businesses, CPAs must understand they too will be facing numerous challenges when performing financial statement audits.

Whether or not practitioners can assist their audit clients with financial statement presentation, or any nonattest services, and maintain their independence has been a long-running debate. To ensure that auditors remain independent, the AICPA Professional Ethics Executive Committee (PEEC) and the U.S. Government Accountability Office (GAO) have created complex and detailed rules.

AICPA's Hosting Services Interpretation concludes that when members provide hosting services, they are maintaining internal control over a client’s data or records, which presents a threat to independence. There are several practical issues you may face as a result of the interpretation.

As a part of its Enhancing Audit Quality Initiative, the AICPA has identified inconsistencies across the administering entities in the program that have impacted the quality of peer reviews. To address audit quality issues, the AICPA Peer Review Board issued several concept papers on how peer review will be administered in the future.

PICPA’s Accounting and Auditing Procedures Committee has been following the AICPA Auditing Standards Board’s (ASB) project on auditor’s reports to evaluate its impact on privately held companies. On Nov. 28, 2017, the ASB finally issued an exposure document.

The scope of the AICPA’s Enhancing Audit Quality initiative is considerable, and its accomplishments to date have been far-reaching, demonstrating AICPA's commitment to bettering the audit.

While most CPAs conceptually support high quality audits, many are not necessarily aware of the importance of supporting documentation or what that documentation should look like. The AICPA has identified several misconceptions regarding audit documentation.

On June 1, 2017, the Public Company Accounting Oversight Board finalized its six-year project to overhaul the auditor’s report. The new standard requires auditors to communicate critical audit matters in the audit report.

The AICPA Auditing Standards Board (ASB) recently issued an exposure draft that would significantly change the reporting model for employee benefit plans (EBP) subject to ERISA. The proposal is the result of a collaborative effort by the U.S. Department of Labor (DOL) and the ASB to address audit quality issues. The joint DOL/ASB working group concluded that some of the procedures unique to EBPs should be highlighted in the auditor’s report. The DOL was asked to provide a list of what they want included in the report. This blog highlights two of the more significant proposals.

The stress of attempting to bridge a client’s needs and expectations with the needs and expectations of regulatory bodies is frustrating enough; it is even more so when regulators are requesting things that you cannot ethically provide. Fortunately, the PICPA can help ensure that CPAs are asked to provide only those services that comply with professional standards, the AICPA and PICPA Codes of Professional Conduct, and state CPA statutes.

As potential clients in the now-legal medical marijuana industry in Pennsylvania begin to call on CPAs for professional services, a conflict arises as to whether or not CPAs can serve these clients under the profession’s Code of Professional Conduct.