Audit Risk Alert

Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting professional nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups, and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession's technical and ethical standards. The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public trust.

How This Alert Helps You 01-03


Economic and Industry Developments  04-08


The Current Economy  04-05


Key Economic Indicators  06-08


Legislative and Regulatory Developments   09-37


Inspections of Broker-Dealer 09-37


Audit and Attestation Issues and Developments 38-119


The AICPA Enhancing Audit Quality Initiative 38-49


Cybersecurity   50-51


Auditing Standards Board 52-87


Accounting and Review Services Committee 88-96


The Public Company Accounting Oversight Board  97-106


Developments in Peer Review   107


Common Peer Review Findings  108-119


Attestation Clarity Project  120-127


Restructuring the Attestation Standards   124-127


Revenue Recognition 128-163


Overview 128-130


Effective or Applicability Date   131-132


Overview of the New Guidance 133-135


Understanding the Five-Step Process 136-147


Additional Guidance Under the New Standard 148-149


Transition Resource Group 150-151


Latest Developments   152-162


Conclusion 163


New Leases Standard Will Change Financial Statement


Presentation   164-193


Issuance and Objective 164-165


Applicability and Effective Date  166-167


Main Provisions  168-178


Lessee Accounting 179-185


Lessor Accounting 186-190


Sale and Leaseback Transactions  191-192


Leveraged Lease Arrangements  193


Accounting for Financial Instruments  194-217


Overview 194-195


Applicability and Effective Date  196-199


Impairment 200-214


Hedge Accounting 215-216


Conclusion 217


Other Accounting Issues and Developments  218-323


Income Taxes   219-223


Consolidation  224-231


Restricted Cash  232-236


Business Combinations 237-246


Simplifying the Test for Goodwill Impairment 247-256


Other Income   257-271


Retirement Benefits 272-277


Nonrefundable Fees and Other Costs 278-284


Stock Compensation   285-292


Service Concession Arrangements  293-303


Financial Instruments With Characteristics of Liabilities


and Equity  304-312


Financial Instruments With Characteristics of Liabilities


and Equity  313-323


Recent Pronouncements at a Glance  324-326


Recent Auditing and Attestation Pronouncements


and Guidance 324


Recent Accounting and Financial Reporting Guidance 325


Recently Issued Technical Questions and Answers   326


Recent AICPA Independence and Ethics Developments 327-356


AICPA Conceptual Frameworks Toolkits   327-328


Definition of a Client   329


New Independence Interpretation—Hosting Services 330-356


On the Horizon   357-392


Auditing and Attestation Pipeline—Nonissuers 359-362


Auditing and Attestation Pipeline—Issuers  363-370


Accounting and Financial Reporting Pipeline 371-382


Independence and Ethics Pipeline  383-392


Resource Central  393-409


Publications   394


Continuing Professional Education  395-398


Webcasts 399


Member Service Center 400


Hotlines  401-408


Industry Websites 409