2020 Not-for-Profit Accounting and Auditing Update

 
 
AICPA (Verlag)
  • 1. Auflage
  • |
  • erschienen am 1. Juli 2020
  • |
  • 192 Seiten
 
E-Book | ePUB mit Adobe-DRM | Systemvoraussetzungen
978-1-119-74730-7 (ISBN)
 
Learn the latest accounting and auditing developments affecting not-for-profits so that accountants, auditors, and financial managers can prepare financial statements with confidence. This work covers new FASB requirements and information on the latest OMB and Yellow Book developments. It features major program determination and case studies related to revenue recognition and auditing documentation and covers hot topics including:
* NFP financial statements
* Risk assessment
* Documentation
* Leases
* Yellow Book
* Major program determination Key changes
* GASB updates including GASB Statement No. 91, Conduit Debt Obligations
* AICPA activities including changes to the auditor's report
* FASB updates including revenue recognition, grants and contracts, updating the definition of collections, and implementation issue surrounding the financial reporting standard
* Federal government activities including updates to the Compliance Supplement and proposed changes to the Uniform Guidance
weitere Ausgaben werden ermittelt
Melisa F. Galasso, CPA, is the founder and CEO of Galasso Learning Solutions LLC. She designs and facilitates courses in advanced technical accounting and auditing topics, including not for profit and governmental accounting. Galasso is a Certified Professional in Learning & Performance (CPLP) and has earned the Association for Talent Development Master Trainer⢠designation. She also serves on the FASB's Not-for-Profit Advisory Committee (NAC), the AICPA's Technical Issues Committee (TIC), has had leadership roles on various A&A committees, and serves on the VSCPA's Board of Directors. She is a 2020 Enterprising Women of the Year Award recipient and was honored as a "40 under 40" by CPA Practice Advisor in 2017 and 2018. She was also named the 2019 Rising Star by her regional NAWBO chapter, received the Don Farmer award for achievement in technical content instruction, and earned several other awards for public speaking and technical training.
Chapter 1 1-1

AICPA Activities 1-1

Recently issued auditing and attestation standards 1-2

SAS No. 135 1-12

SAS No. 137 1-13

SAS No. 138 1-15

SSAE 19 1-16

SSAE 20 1-17

Recently issued changes to the Code of Professional Conduct 1-18

Other projects to monitor 1-22

2018 mid-year progress report - Enhancing Audit Quality 1-23

Addressing common audit deficiencies 1-25

Appendix 1A Chapter 1, A-1

Documentation Case Study Chapter 1, A-1

Appendix 1B Chapter 1, B-1

Example Auditor's Report and Case Study Chapter 1, B-1

Appendix 1C Chapter 1, C-1

Not-For-Profit Accounting and Audit Competency Resource Chapter 1, C-1

Chapter 2 2-1

FASB Activities 2-1

Revenue recognition and leases 2-3

ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made 2-8

ASU No. 2016-02, Leases (Topic 842) 2-10

Other recent FASB standards 2-16

ASU No. 2016-13 2-17

ASU No. 2016-15 2-19

ASU No. 2016-18 2-21

ASU No. 2017-04 2-23

ASU No. 2017-07 2-24

ASU No. 2017-08 2-25

ASU No. 2017-10 2-26

ASU No. 2018-13 2-27

ASU No. 2019-03 2-28

ASU No. 2019-06 2-29

ASU No. 2019-10 2-30

Staff Q&A on whether private companies and NFP entities can apply Staff Accounting Bulletin (SAB) No. 118 2-31

Relevant outstanding exposure drafts 2-32

ASU No. 2016-14 2-33

Appendix 2A Chapter 2, A-1

Revenue Recognition Case Study Chapter 2, A-1

Chapter 3 3-1

Federal Government Activities 3-1

Government Auditing Standards, 2018 Revision 3-2

OMB Compliance Supplement 3-4

Uniform Guidance refresher 3-11

Uniform Guidance -- SEFA 3-17

Uniform Guidance -- Determination of major programs 3-20

Uniform Guidance - Reporting considerations 3-26

Protected personally identifiable information 3-32

Uniform Guidance -- Procurement standards 3-33

Cost principles in a single audit 3-35

Government-wide audit quality study 3-40

Proposed changes to the Uniform Guidance 3-41

Common deficiencies found in single audits 3-44

Appendix 3A Chapter 3, A-1

Major Program Determination Case Study Chapter 3, A-1

Glossary Glossary 1

Index Index 1

Solutions Solutions 1

Chapter 1 Solutions 1

Chapter 2 Solutions 7

Chapter 3 Solutions 1


Appendix 1B
EXAMPLE AUDITOR'S REPORT AND CASE STUDY


Independent Auditor's Report


[Appropriate Addressee]

Report on the Audit of the Financial Statements1


Opinion

We have audited the financial statements of XYZ Not-for-Profit Organization, which comprise the statement of financial position as of September 30, 20X1, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of XYZ Not-for-Profit Organization as of September 30, 20X1, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of XYZ Not-for-Profit Organization and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

[This section of the auditor's report is included only if the auditor is engaged to communicate key audit matters.]

Key audit matters are those matters that were communicated with those charged with governance and, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

[Description of each key audit matter in accordance with section 701, Communicating Key Audit Matters in the Independent Auditor's Report]

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for [insert the time period set by the applicable financial reporting framework, which for FASB-reporting entities is one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued, when applicable)].

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

  • Exercise professional judgment and maintain professional skepticism throughout the audit.
  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the XYZ Not-for-Profit Organization's internal control. Accordingly, no such opinion is expressed.2
  • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
  • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about XYZ Not-for-Profit Organization's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Other Information [or another title, if appropriate, such as "Information Other Than the Financial Statements and Auditor's Report Thereon"]


[Reporting in accordance with the reporting requirements in AU-C section 720, The Auditor's Responsibilities Relating to Other Information Included in Annual Reports (refer to illustrations in the exhibit of AU-C section 720)]3

Report on Other Legal and Regulatory Requirements


[The form and content of this section of the auditor's report would vary depending on the nature of the auditor's other reporting responsibilities.]

[Signature of the auditor's firm]

[City and state where the auditor's report is issued]

[Date of the auditor's report]

Case Study Part 1


Draw a line to the corresponding section header for each statement below:


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Management's responsibility Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Key audit matters are those matters that were communicated with those charged with governance and, in our professional judgment, were of most significance in our audit of the financial statements of the current period. Key Audit Matters In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of NFP Entity as of December 31, 20X1 and 20X0, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. Auditor's Responsibility We are required to be independent of ABC Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. Opinion We have audited the financial statements of NFP Entity, which comprise the balance sheets as of December 31, 20X1 and 20X0, and the related statements of income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Basis for Opinion The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. We conducted our audits in accordance with auditing standards generally accepted in the United States of...

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