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Prof Excellence Advisor
Professional Requirements
Disclosures
Technical Tidbits
Potpourri
100
How many Professional Excellence Advisor Newsletters (excluding the PED Breaking Newsletter) have been issued? How many have you read?
4
100
Who should sign the management representation letter for audits and reviews?
*SAS 85/AU Section 333 - The letter should be signed by those members of management with overall responsibility for financial and operating matters whom the auditor believes are responsible for and knowledgeable about, directly or through others in the organization, the matters covered by the representations. Such members of management normally include the chief executive officer and chief financial officer or others with equivalent positions in the entity. *SSARS 19 - The letter should be signed by those members of management whom the accountant believes are responsible for and knowledgeable about (directly or through others in the organization) the matters covered in the representation letter. Normally, the chief executive officer and chief financial officer or others with equivalent positions in the entity should sign the representation letter.
100
What is the ASC reference for fair value?
ASC 820
100
What is the title of SAS 117?
Compliance Audits
100
Currently, how many ASU's have been issued during 2011.
9
200
Currently, which auditing standards only impact governmental entities per firm policy?
SAS 119 Supplementary Information in Relation to the Financial Statements As a Whole and SAS 120 Required Supplementary Information
200
In relation to our report, what periods are required to be included in a management rep letter for audits and reviews?
•SAS 85/AU Section 333 Written representations from management should be obtained for all financial statements and periods covered by the auditor's report. For example, if comparative financial statements are reported on, the written representations obtained at the completion of the most recent audit should address all periods being reported on. •SSARS 19 Written representations are required from management for all financial statements and periods covered by the accountant’s review report. For example, if comparative financial statements are reported on, the representations obtained at the completion of the most recent review should address all periods being reported on.
200
The amount of shipping and handling is required to be disclosed if classified as cost of goods sold in the income statement. True or false
False. The amount is only required to be disclosed if not classified as cost of goods sold.
200
What resources are available for variable interest entities?
•Documentation on the Ampersand from training - memo template and flowchart. •PPC reference library Related Parties Including Variable Interest Entities
200
What is an appropriate title to use for a compilation report?
Independent Accountants’ Compilation Report or Accountants’ Compilation Report
300
ASU 2010-25 had what impact on our pension audits?
Moved participant loans from the investment section of the financial statements to a stand-alone line-item outside of the investment assets (notes receivable from participants) AND were previously measured at fair value and are now measured at their unpaid principal balance plus any accrued but unpaid interest.
300
Where do the independence rules originate (authoritative body/ document)?
In ARM in the AICPA Code of Professional Conduct Section 101 are the rules and examples are in Section 191.
300
What are 3 sources of financial statement disclosure examples?
PPC Interactive Disclosure Library, ARM disclosure manual, accounting trends & techniques, guides on the Ampersand, SEC search, ASC Appendices
300
What is the difference between participant loans and loans to participants?
Participant loans are recorded as assets, whereas loans to participants are outside of the plan. Loans to participants generally hold collateral within the plan, however there are no assets recorded on the plan financial statements, rather disclosures with regards to the balances collateralized.
300
If a client is deemed to be a public debt obligor, certain filing requirements are required under the Municipal Securities Rulemaking Board. These filing requirements are generally found at what clearinghouse?
EMMA (Electronic Municipal Market Access)
400
What additional testing is required in a GAS (Yellow Book) audit? Hint: this is not a single audit!
None- we are only reporting on findings during our f/s audit, rather than performing additional testing
400
What are two examples of a covered member?
•The term covered member is defined as follows: •An individual on the attest engagement team •An individual in a position to influence the attest engagement •A partner, principal or manager who provides ten or more hours of nonattest services to the attest client during a specified period •A partner or principal in the office in which the lead attest engagement partner or principal primarily practices with respect to the attest engagement •The firm and its employee benefit plans, or; •An entity whose operating, financial, or accounting principles can be controlled by any of the preceding individuals or entities
400
For purposes of required disclosures under 958-205-50, an NFP's endowment fund can consist of which class(es) of net assets?
Unrestricted, Temporarily restricted, Permanently restricted
400
This standard has replaced SAS 70 for periods ending on or after June 15, 2011?
SSAE 16
400
If an organization has federal award expenditures of $450K during a year, how does the client know if they require a GAS audit?
Refer to their grant documents/ contact their grantors
500
Where can you find the Professional Excellence Advisor?
•Ampersand/Professional Excellence -Newsletter/Professional Excellence Advisor •Also sending out via e-mail
500
Does the in-charge accountant on one HUD engagement over the single audit threshold have to comply with Yellow Book CPE requirements?
Yes- Auditors assigned to planning, directing, performing field work, or reporting on GAGAS audits or attestation engagements should meet both the 80-hour and the 24-hour CPE requirements. The terms “planning,” “directing,” “performing field work,” and “reporting” are defined in YB
500
Provide an example of an investment that would require the net asset value disclosures?
Hedge funds, private equity funds, real estate funds, venture capital funds, offshore fund vehicles, and funds of funds Pension – pooled separate accounts and common collective trusts
500
In 2010 F/S with summarized comparative information for 2009, you discover a prior period adjustment relating to 2008 revenue being overstated. Do you restate (A) 2010 revenue, (B) 2009 revenue, (C)2010 beginning of year net assets, or (D) 2009 beginning of year net assets?
C- restate 2010 BOY net assets
500
The financial statements have already been issued and the client calls and would like an immaterial change to the financial statements. I should (a) be efficient and since immaterial just make a new pdf myself and send to the client (b) communicate what changed to the applicable parties, request the original copies to be returned and destroyed and have them send an acknowledgement, add a memo to the binder indicating what changed, make the change, recreate the final pdf, have it final foot and read, submit for binder approvals and delete the old copy. (c) b plus change the report date, obtain a new quality control review, obtain a new management representation letter, update legal letters as necessary, and perform subsequent event testing through the new report date.
b