October 29, 2015 AICPA Issues New Interpretation and Auditing Standard

The Auditing Standards Board (ASB) of the American Institute of CPAs (AICPA) has issued Statement on  Auditing Standards No. 130, An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements, and Interpretation No. 2, “Sustainability Financial Statements Under Federal Financial Accounting Standards—Auditor Reporting,” of AU-C section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards).

SAS No. 130  establishes requirements and provides guidance that applies only when an auditor is engaged to perform an audit of internal control over financial reporting (ICFR) that is integrated with an audit of financial statements (integrated audit). It becomes effective for integrated audits for periods ending on or after December 15, 2016. At that time, Statement on on Standards for Attestation Engagements No. 15, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, and its related attestation interpretation, “Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act” (AICPA, Professional Standards, AT sec. 501 and 9501), will be withdrawn, and amendments to various sections in SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, will take effect. The ASB will consider developing, at a later date, an attestation standard addressing examinations of internal control other than ICFR that is integrated with an audit of financial statements.

Interpretation No. 2 states that an auditor may report on the basic financial statements, which include the statements of social insurance, changes in social insurance amounts, and long-term fiscal projections, in accordance with GAAS. The interpretation also provides an illustrative auditor’s report containing an unmodified opinion on the U.S. government-wide financial statements.

 

To speak with a member of the ASB’s staff, please contact Mitchell Slepian, (212)-596-6177, mslepian@aicpa.org

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