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AICPA Peer Review Conference Takeaways Part No. 1: New Standards

September 7, 2022  |  Faye Hayhurst, CPA

AICPA Peer Review Conference Takeaways Part No. 1: New Standards There was much to be learned from the AICPA’s annual Peer Review Conference held in August. While the conference included plenty of content specific to conducting peer reviews, there was also much general accounting and auditing content pertinent to firms who perform those engagements.
 
Consider this your mid-year reminder about new and coming standards that may apply to your firm, depending on the types of engagements performed. Of this list, SAS 134 is the most critical for firms performing audits other than employee benefit plans (EBP) audits, and SAS 136 is critical for audits of employee benefit plans. Both lay out significant changes to their respective audit reports.
 
FYI to any firm performing an employee benefit plan audit: If you aren’t aware that limited scope audits no longer exist, sign up for EBP audit CPE as soon as possible!
 
Standard Description Effective date
SASs   Audits of financial statements for:
134 Auditor reporting and amendments Periods ending on or after Dec. 15, 2021
135 Omnibus - certain changes to conform to PCAOB standards Periods ending on or after Dec. 15, 2021 (Except amendments to AU-C 930 - effective for interim periods of fiscal years ending on or after Dec. 15, 2021)
136 Auditor reporting on employee benefit plans Periods ending on or after Dec. 15, 2021
137 Other information included in annual reports Periods ending on or after Dec. 15, 2021
138 Amendments to the description of materiality Periods ending on or after Dec. 15, 2021
139 Amendments to AU-C 800, 805, 810 for auditor reporting changes Periods ending on or after Dec. 15, 2021
140 Amendments to AU-C 725,730,935, and 940 for auditor reporting changes; Amendments t to AU-C 930 Periods ending on or after Dec. 15, 2021 (Except amendments to AU-C 930 — effective for interim periods of fiscal years ending on or after Dec. 15, 2021)
141 Deferral of effective dates for SAS 134-140  Effective upon issuance
SSAEs    
19 Agreed upon procedures Reports dated on or after July 15, 2021
20 Amendments to the description of materiality Examination or review reports dated on or after Dec. 15, 2021
21 Direct Examinations Reports dated on or after June 15, 2022
22 Review Engagements Reports dated on or after June 15, 2022
SSARS    
25 Materiality in a review of financial statements and adverse conclusions Engagements performed in accordance with SSARS for periods ending on or after Dec. 15, 2021
 

Here’s a list of standards with upcoming effective dates:

Standard Description Effective date
SASs   Audits of financial statements for:
142 Audit evidence Periods ending on or after Dec. 15, 2022
143 Auditing accounting estimates and related disclosures Periods ending on or after Dec. 15, 2023
144 Use of specialists and use of pricing information Periods ending on or after Dec. 15, 2023
145 Risk assessment Periods ending on or after Dec. 15, 2023
146 Quality management for engagements Periods beginning on or after Dec. 15, 2025
147 NOCLAR Periods beginning on or after June 30, 3023
148 Amendments to AU-C 935, Compliance Audits Split to be consistent with SAS 142 and with SAS 143, based on specific amendment

And don’t forget two of the biggest accounting standards in recent memory:

  • ASU 2014-09, Revenue from Contracts with Customers (Topic 606); after a pandemic-related deferral, this was effective for all organizations no later than reporting periods beginning after Dec. 15, 2019. Consider the impact of the standard on all clients to whom the standard applies.
  • ASU 2016-02, Leases (Topic 842), effective for most organizations for fiscal years beginning after Dec. 15, 2021. Make sure your clients are aware and prepared!
Remember that as a standard part of their peer review procedures, peer reviewers will be looking to see if your firm implemented applicable standards at the appropriate times.
 
That’s a lot of changes! But the MNCPA has your back, with many opportunities for CPE that covers A&A updates. Here’s to being well-prepared and ready with an answer when your peer reviewer asks about implementation of new standards.

 

Topics: Accounting & Auditing

Faye Hayhurst, CPA

Faye Hayhurst is the MNCPA director of finance and administration. She is committed to using numbers to tell relevant stories, although she also employs words, charts and occasionally clothing to communicate a message. While some have questioned her about the pressures of being the CPA for the MNCPA, Faye considers presenting financial information to fellow CPAs a dream job. Outside of storytelling with numbers, Faye enjoys directing her church's handbell choir, visiting national parks and other scenic places, and checking out the chocolate products at Trader Joe's. Faye can be reached at 952-885-5540 or fhayhurst@mncpa.org.

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