Alert: Developments in Preparation, Compilation, and Review Engagements, 2017/18

Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession 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 interest.

Developments in Preparation, Compilation, and Review Engagements—2017/18 01-.143

How This Alert Helps You .01

Economic Developments .02-.06

The Current Economy .02-.03

Key Economic Indicators .04-.06

Frequently Asked Questions and Answers From the Center for Plain English Accounting .07-.08

Recent AICPA Independence and Ethics Developments .09-.21

The Revised Code of Professional Conduct .09

AICPA Conceptual Frameworks .10-.14

New "Hosting Services" Interpretation .15-.17

Proposed New Ethics Interpretations and Revised Defined Terms .18-.19

New FAQs .20-.21

Current Practice Issues .22-.55

Consideration of Materiality in a Review Engagement .22-.28

Going Concern .29-.36

Restatements .37-.41

Preparation Engagement When in Public Practice and Providing Certain Consulting Services .42-.47

Preparation of Financial Statements Prior to Review or Audit by Another Accountant .48-.49

Application of SSARSs to Engagements for Estates and Trusts .50

Preparation and Compilation of Prospective Financial Information .51-.55

Don’t Let Scope Creep Lead You Out of Bounds .56

Peer Review of SSARSs Engagements .57-.72

Common Peer Review Findings—Compilations .59-.63

Common Peer Review Findings—Reviews .64-.71

Other Common Peer Review Findings .72

Recent FASB Activities .73-.93

Revenue Recognition Standards .73-.80

Restricted Cash .81-.85

Consolidation .86-.93

AICPA Financial Reporting Framework for Small- and Medium-Sized Entities .94-.101

Alternatives to U.S. GAAP in Light of the New Revenue Recognition and Leases Standards .94-.95

The FRF for SMEs Alternative .96-.97

FRF for SMEs Approach to Revenue Recognition and Leases .98-.99

Recent Academic Research .100

Considering the FRF for SMEs Framework for Your Clients .101

On the Horizon .102-.120

Exposure Draft of Proposed Statement on Standards for Attestation Engagements, Selected Procedures .104-.111

The ASB’s Project to Revise the Attestation Literature to Permit Non-Assertion-Based Examinations and Reviews .112

Exposure Draft of Proposed SSARS, Omnibus Statement on Standards for Accounting and Review Services—2018 .113-.116

Other Items on the ARSC’s Current Agenda .117-.120

Upcoming ARSC Meetings .121-.122

Resource Central .123-.142

Publications .124

The Engagement Letter: Best Practices and Examples .125

FRF for SMEs Toolkits .126-.127

Decision Tool for Adopting the FRF for SMEs Framework .128

Continuing Professional Education .129-.133

Member Service Center .134

Hotlines .135-.136

The AICPA CPEA .137

AICPA Online Professional Library: Accounting and Auditing Literature .138

Practice Aid Accounting and Financial Reporting Guidelines for Cash- and Tax-Basis Financial Statements .139

Financial Reporting Center of AICPA.org .140-.142

Appendix—Additional Internet Resources .143