Cover Page
images

WHAT'S NEW IN THIS EDITION

STANDARDS RECENTLY ISSUED


Statement Title Issue Date Section
Statement on Auditing Standards (SAS) No. 134 Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements May 2019 AU-C 700, 701, 705, 706
SAS No. 135 Omnibus Statement on Auditing Standards—2019 May 2019
SAS No. 136 Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA July 2019 AU-C 703
SAS No. 137 The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports July 2019 AU-C 720
Statement on Standards for Forensic Services No. 1 Statement on Standards for Forensic Services June 2019 FS 100
NEW SECTIONS

Forensic Services [FS]

The section Forensic Services has been added by Statement on Standards for Forensic Services No. 1. This statement is effective for engagements accepted on or after January 1, 2020.

ADDITIONAL CHANGES

In addition to these recently issued standards, other changes in this edition of AICPA Professional Standards include the following.

Section Change
AU-C 700 appendix B Addition to present the amendments from SAS No. 135 until the effective date of that standard.
AU-C 700A Addition of AU-C 700A, Forming an Opinion and Reporting on Financial Statements, to retain the current guidance from SAS No. 122 section 700 until the effective date of SAS No. 134
AU-C 9700A Addition of AU-C 9700A Forming an Opinion and Reporting on Financial Statements: Auditing Interpretations of Section 700A, to retain the interpretations related to SAS No. 122 section 700 until the effective date of SAS No. 134
AU-C 705A Addition of AU-C section 705A, Modifications to the Opinion in the Independent Auditor’s Report, to retain the current guidance from SAS No. 122 section 705 until the effective date of SAS No. 134
AU-C 706A Addition of AU-C section 706A, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report, to retain the current guidance from SAS No. 122 section 706 until the effective date of SAS No. 134.
AU-C 720A Addition of AU-C section 720A, Other Information in Documents Containing Audited Financial Statements, to retain the current guidance from SAS No. 118 until the effective date of SAS No. 137.
AT-C appendix A Revisions to AICPA Guides and Statements of Position.
ET 0.400.12 Revisions to definition of covered member.
ET 0.600.010 Revisions to the “New and Revised Interpretations and Other Guidance” section.
ET 1.224 Revision to section heading
ET 1.224.020 Revision to the “State and Local Government Client Affiliates” interpretation.
ET 1.260.040 Revisions to the “Leases” interpretation.
ET 1.295.143 Revisions to the “Hosting Services” interpretation.
ET 1.295.145 Revision to “Information Systems Services” interpretation
ET 1.297.020 Revisions to the “Agreed-Upon Procedure Engagements Performed in Accordance With SSAEs” interpretation.
ET 1.400.205 Revisions to the “Transfer of Files and Return of Client Records in Sale, Transfer, Discontinuance or Acquisition of a Practice” interpretation.
ET 1.700.110 Revisions to the “Disclosing Client Information in Connection With a Quality Review” interpretation.
PR 100 Revisions to Standards for Performing and Reporting on Peer Review for various conforming and editorial changes.
PR 9100 Revisions to Standards for Performing and Reporting on Peer Review — Interpretations of Section 100 for various conforming and editorial changes.

__________________________

HOW THIS PUBLICATION IS ORGANIZED

Scope of Professional Standards

Professional Standards brings together for continuing reference the currently effective pronouncements on professional standards issued by the AICPA and contains a section detailing the applicability and integration of AICPA Professional Standards and PCAOB Standards.

Arrangement of Material in Professional Standards

The material in Professional Standards is arranged as follows:

Applicability of AICPA Professional Standards

Applicability of AICPA Professional Standards to Audits of Financial Statements

Statements on Auditing Standards (Clarified) and Related Auditing Interpretations [AU-C]

AU-C Cross-References to SASs

Introduction

General Principles and Responsibilities

Risk Assessment and Response to Assessed Risks

Audit Evidence

Using the Work of Others

Audit Conclusions and Reporting

Special Considerations

Special Considerations in the United States

Appendixes

Topical Index

Statements on Standards for Attestation Engagements (Clarified) [AT-C]

AT-C Cross-References to SSAEs

AT-C Introduction

Common Concepts

Level of Service

Subject Matter

Exhibits

Appendixes

Topical Index

Statements of Position—Auditing and Attestation [AUD]

Introduction

Statements of Position—Auditing and Attestation

Statement of Position—Accounting [ACC]

Introduction

Statement of Position—Accounting

Statements on Standards for Accounting and Review Services (Clarified) and Related Accounting and Review Services Interpretations [AR-C]

AR-C Cross-References to SSARSs

Introduction

General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services

Preparation of Financial Statements

Compilation Engagements

Review of Financial Statements

Compilation of Pro Forma Financial Information

Appendixes

Topical Index

Code of Professional Conduct [ET]

Preface: Applicable to All Members

Part 1 — Members in Public Practice

Part 2 — Members in Business

Part 3 — Other Members

Appendixes

Topical Index

Bylaws [BL]

Definitions

Name and Purpose

Admission to, and Retention of, Membership and Association

Organization and Procedure

Financial Management and Controls

Meetings of the Institute and the Council

Election of Council, Board of Directors, and Officers of the Institute

Termination of Membership and Disciplinary Sanctions

Amendments

General

Topical Index

Valuation Services [VS]

Statements on Standards for Valuation Services

Interpretations of Statements on Standards for Valuation Services

Consulting Services [CS]

Statement on Standards for Consulting Services

Topical Index

Quality Control [QC]

Statements on Quality Control Standards

Peer Review [PR]

Standards for Performing and Reporting on Peer Reviews

Interpretations of Standards for Performing and Reporting on Peer Reviews

Tax Services [TS]

Statements on Standards for Tax Services

Interpretations of Statements on Standards for Tax Services

Appendix

Topical Index

Personal Financial Planning [PFP]

Statements on Responsibilities in Personal Financial Planning Practice

Topical Index

Continuing Professional Education [CPE]

Policies for the CPE Membership Requirement

Preamble

Standards for CPAs

Standards for CPE Program Sponsors

Glossary

Topical Index

Description of Content

Applicability of AICPA Professional Standards

Part I is a narrative that provides guidance about standards applicable to entities as defined by the Sarbanes-Oxley Act of 2002, as amended, and standards applicable to nonissuers.1

U.S. Auditing Standards—AICPA (Clarified) [AU-C]

A cross-reference chart is provided for this division and is identified as AU-C Cross-References to SASs. There are two parts to this cross-references section

Part I is a list of all Statements on Auditing Standards (SASs) issued beginning with SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and a list of sources of sections in the current text.

Part II is a list of SAS Nos. 1–121 and a list of Statement on Auditing Procedures Nos. 1–54.

The major divisions are divided into sections, each with its own section number. Each paragraph within a section is decimally numbered. For example, AU-C section 210.04 refers to the fourth paragraph of AU-C section 210, Terms of Engagement.

Auditing interpretations are numbered in the 9000 series with the last three digits indicating the section to which the interpretation relates. Interpretations immediately follow their corresponding section. For example, interpretations related to AU-C section 230 are numbered 9230, which directly follows AU-C section 230.

There are two exhibits relating to auditing standards as follows:

Exhibit A provides a list of AU-C sections designated by SAS No. 122 cross referenced to a list of AU sections.

Exhibit B provides a list of retained interpretations.

There are five appendixes relating to auditing standards as follows:

Appendix A provides the historical background for the present SASs.

Appendix B highlights substantive differences between the International Standards on Auditing and Generally Accepted Auditing Standards.

Appendix C is reserved.

Appendix D provides a list of AICPA Audit and Accounting Guides and Statements of Position.

Appendix E provides a schedule of changes that lists changes that are the result of Statements on Auditing Standards issued after SAS No. 122, which was issued in October 2011.

Appendix F provides a list of other auditing publications published by the AICPA that have been reviewed by the AICPA Audit and Attest Standards staff.

A topical index is provided for this division and is identified as AU-C Topical Index.

U.S. Attestation Standards—AICPA (Clarified) [AT-C]

A cross-reference chart is provided for this division and is identified as AT-C Cross-References to SSAEs. There are two parts to this cross-references section

Part I is a list of all Statements on Auditing Standards (SSAEs) issued beginning with SSAE No. 18, Attestation Standards: Clarification and Recodification, and a list of sources of sections in the current text.

Part II is a list of SSAE Nos. 1–17.

The standards are divided into sections, each with its own section number. Each paragraph within a section is decimally numbered.

There is one exhibit relating to attestation standards as follows:

The exhibit provides a list of AT-C sections designated by SSAE No. 18 cross referenced to a list of AT sections.

There are two appendixes relating to attestation standards as follows:

Appendix A provides a list of AICPA attestation guides and Statements of Position.

Appendix B identifies other attestation publications published by the AICPA that have been reviewed by the AICPA Audit and Attest Standards staff.

The AT-C topical index uses the keyword method to facilitate reference to the pronouncements. The index is arranged alphabetically by topic and refers to major divisions, sections, and paragraph numbers.

Statements of Position

Statements of Position are assigned section numbers in chronological order as they are issued. Each paragraph or equivalent is decimally numbered for reference purposes.

Accounting and Review Services (Clarified) [AR-C]

A cross-reference chart is provided for this division and is identified as AR-C Cross-References to SSARSs. There are two parts to this cross-references section:

Part I is a list of all SSARSs issued beginning with SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, and a list of sources of sections in the current text.

Part II is a list of SSARS Nos. 1–20.

The standards are divided into sections, each with its own section number. Each paragraph within a section is decimally numbered.

Accounting and review services interpretations are numbered in the 9000 series with the last two digits indicating the section to which the interpretation relates. Interpretations immediately follow their corresponding section. For example, interpretations related to section 90 are numbered 9090, which directly follows section 90.

There is one appendix, Appendix A, that provides a schedule of changes resulting from SSARSs issued subsequent to SSARS No. 21.

The AR-C topical index uses the keyword method to facilitate reference to the pronouncements. The index is arranged alphabetically by topic and refers to major divisions, sections, and paragraph numbers.

Code of Professional Conduct

The AICPA Code of Professional Conduct (the code) begins with a preface, which applies to all members. The term member, when used in part 1 of the code, applies to and means a member in public practice; when used in part 2 of the code, applies to and means a member in business; and when used in part 3 of the code, applies to and means all other members, such as those members who are retired or unemployed. A member may have multiple roles, such as a member in business and a member in public practice. In such circumstances, the member should consult all applicable parts of the code and apply the most restrictive provisions.

The code consists of principles and rules as well as interpretations and other guidance. The principles provide the framework for the rules that govern the performance of member’s professional responsibilities.

A variety of topics appear in parts 1–3 of the code. When applicable, topics are aligned with the relevant rule or rules of conduct. Topics may be further divided into subtopics, and some subtopics include one or more sections. Topics, subtopics, and sections interpret the rules of conduct.

There are four appendixes relating to the code as follows:

Appendix A provides the AICPA Council’s resolution on bodies designated to promulgate technical standards.

Appendix B provides the AICPA Council’s resolution on the “Form of Organization and Name Rule” (ET sec. 1.800.001).

Appendix C contains a revision history table of changes made to the code subsequent to June 1, 2014.

Appendix D provides a mapping document that identifies where the content from the prior code appears in the effective code.

A topical index is provided for this division and is identified as ET Topical Index.

Bylaws

The Bylaws of the AICPA and the related Implementing Resolutions of Council are assembled within the major divisions by section numbers. For example, BL section 230, Requirements for Retention of Membership, is followed by BL section 230R, Implementing Resolutions Under Section 2.3 Requirements for Retention of Membership.

In BL section 900, General, the following sections are included:

AICPA Mission Statement

A Description of the Professional Practice of Certified Public Accountants

A topical index is provided for this division and is identified as BL Topical Index.

Valuation Services

Statements on Standards for Valuation Services and Valuation Services Interpretations appear with the prefix VS in their section numbers.

Consulting Services

Statement on Standards for Consulting Services appears with the prefix CS in its section number.

A topical index is provided for this division and is identified as CS Topical Index.

Quality Control

Statements on Quality Control Standards appear with the prefix QC in their section numbers.

Peer Review

Standards for Performing and Reporting on Peer Reviews and Peer Review Interpretations appear with the prefix PR in their section numbers.

Tax Services

Statements on Standards for Tax Services and Tax Services Interpretations appear with the prefix TS in their section numbers.

A topical index is provided for this division and is identified as TS Topical Index.

Personal Financial Planning

Statements on Responsibilities in Personal Financial Planning Practice appear with the prefix PFP in their section numbers.

A topical index is provided for this division and is identified as PFP Topical Index.

Continuing Professional Education

Policies for the CPE Membership Requirement and Statement on Standards for Continuing Professional Education (CPE) Programs appear with the prefix CPE in their section numbers.

A topical index is provided for this division and is identified as CPE Topical Index.

Topical Index

The topical indexes use the keyword method to facilitate reference to the pronouncements. The indexes are arranged alphabetically by topic and refer the reader to major divisions, sections, and paragraph numbers.

Citation
Auditing (United States)—Clarified AU-C
Attestation (United States)—Clarified AT-C
Accounting and Review Services—Clarified AR-C
Code of Professional Conduct ET
Bylaws BL
Consulting Services CS
Tax Services TS
Personal Financial Planning PFP
Continuing Professional Education CPE