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Audit & Assurance

October 2020 Audit & Assurance Newsletter

New FAQs address health care entity pandemic accounting

New frequently asked question guidance for health care entities on pandemic-related questions have been added to a list that was first posted August 3.

All the FAQ guidance was developed by the AICPA with assistance from a group of health care experts and is designed to assist financial statement preparers and auditors as they work through challenges they are encountering as a result of the pandemic.  read more     – Journal of Accountancy

FASB alters nonprofit accounting rules for gifts-in-kind

Nonprofits will be required to provide additional information on the contributions of nonfinancial assets they receive under a new accounting standard recently issued by FASB.  read more     Journal of Accountancy

FASB proposes expedient for private company franchisors

FASB recently proposed a standard that would provide a practical expedient designed to simplify how private company franchisors would analyze certain activities when determining their performance obligations in a franchise agreement under the board’s revenue recognition standard.  read more     Journal of Accountancy

Fair value, stablecoins addressed in new AICPA guidance

The AICPA recently published nonauthoritative guidance on issues related to the accounting for digital assets.  read more     Journal of Accountancy

‘Direct examination’ engagement created by SSAE No. 21

Practitioners will be able to perform a new engagement known as a direct examination for clients under a new standard recently published by the AICPA Auditing Standards Board (ASB).  read more     Journal of Accountancy

How auditors can enhance the reliability of non-GAAP reporting

Engaging external auditors to perform procedures outside the financial statement audit related to non-GAAP financial measures or key performance indicators (KPIs) can raise public confidence in this information, according to a Center for Audit Quality (CAQ) report recently issued.  read more        Journal of Accountancy

AICPA ethics proposal would limit firms’ loaning of staff to attest clients

The AICPA Professional Ethics Executive Committee (PEEC) is reproposing a new interpretation that would address independence requirements related to “staff augmentation” arrangements in which a CPA firm loans staff to a client.  read more     – Journal of Accountancy

For more information, please contact our audit professionals at aaalerts@windes.com or toll free at 844.4WINDES (844.494.6337).

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