Archive for the ‘CPA Professional Standards’ Category

Firm Announcement: Darren Morrow Passes Final CPA Exam!

March 4, 2013

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Please join us in congratulating senior accountant Darren Morrow for passing his fourth and final exam to qualify to become a Certified Public Accountant (CPA).  We are excited with Darren for this great accomplishment and are confident that the knowledge and skills he gained during his years of rigorous schooling and studying will be an asset to our firm and to his career in the field of public accounting.

To give you an idea of how big of an achievement this is, just imagine taking four 3-4 hour long exams within an 18 month period in the areas of Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment and Concepts.  And each of those exams requires approximately 75 hours of studying!

To become a CPA in California, you must fulfill the following requirements:

  1. Bachelor’s degree
  2. 24 semester units completed in accounting-related subjects
  3. 24 semester units completed in business-related subjects
  4. Pass all four parts of the Uniform CPA Exam within 18 months
  5. Two years of general accounting experience
  6. 500 hours of auditing and attestation experience
  7. Pass the California professional ethics exam

For more information on becoming a CPA, please contact our firm or visit http://www.calcpa.org.

ASB Issues Interpretation to SAS 119

August 8, 2011

The Auditing Standards Board has issued Interpretation No. 1, “Dating the Auditor’s Report on Supplementary Information,” to SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole. The interpretation addresses how an auditor makes clear that no additional procedures were performed on the audited financial statements subsequent to the date of the auditor’s report on those financial statements when reporting on the supplementary information (either in a separate report or in an explanatory paragraph within the auditor’s report on the financial statements) after the date of the auditor’s report on the financial statements.

AICPA Private Companies Practice Section has Issued Video to Support Implementation of Newly Issued SSARS No. 19

September 20, 2010

http://link.brightcove.com/services/player/bcpid586641293001?bclid=587238645001&bctid=590073128001

New Standard for Review’s and Compilations, SSARS No. 19, is Effective for Statements after December 15, 2010

April 29, 2010

Via Journal of Accountancy

The AICPA’s Accounting and Review Services Committee issued Statement on Standards for Accounting and Review Services no. 19 in December, and it is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2010.  The standard brings significant changes to compilation and review services, including the disclosure of reasons for lack of independence in a compilation report, and the separation of compilation and review guidance.

The AICPA’s Journal of Accountancy has prepared a great article explaining the new standard, including illustrations of the differences between the new and old standards here.

Exposure Draft Issued Proposing Revisions to Compilation and Review Standards

May 8, 2009

Via the AICPA

Based on recommendations form the Private Company Practice Section Reliability Task Force, the exposure draft includes three proposed standards:

– Framework and Objectives for Performing and Reporting on Compilation and Review Engagements

– Compilation of Financial Statements

– Review of Financial Statements

The full text of the exposure draft can be found here.

The PCPS task force recommended revising the standards to allow an accountant to issue a review report in situations where the accountant’s independence is impaired in connection with the performance of a nonattest service relating to the design or operation of an aspect of internal control over financial reporting.

According to the Journal of Accountancy article, significant changes to the standards would include:

  • – The introduction the new terms such as moderate assurance, review evidence and review risk to the review literature to harmonize with international review standards.

  • – A discussion of materiality in the context of a review engagement.

  • – A requirement that an accountant establish an understanding with management regarding the services to be performed through a written communication, that is, an engagement letter.

  • – The establishment of enhanced documentation requirements for compilation and review engagements.

  • – Guidance for practitioners who are engaged to perform a compilation or review engagement when they have also been engaged to perform nonattest services.  The guidance includes reporting requirements for instances in which the accountant’s independence is impaired due to the performance of these services.

  • – The ability for an accountant to include a general description in the accountant’s compilation report regarding the reason(s) for an independence impairment.

Barry Melancon, president of the AICPA, has issued a brief explanatory video here.

The comment deadline is July 31 and the proposed effective date fo the changes is for financial statements for periods on or after December 15, 2010.