2009
Governmental Audit
Quality Center
Annual Update Webcast
April 28, 2009
1
Program Objectives
This program is designed to help you:
 Get an update on Center activities and membership
 Learn about the latest technical matters relating to your
2009 audits
 Get the latest news on how the American Recovery and
Reinvestment Act of 2009 (Recovery Act) may affect
your single audits.
 Get an update on audit quality including the GAQC
response to the federal study on single audit quality
(PCIE report).
 Learn about resources to help you maintain or improve
audit quality
2
Today’s Speakers
Corey Arvizu, CPA
Partner
Heinfeld, Meech & Co., PC
___
Amanda Nelson, CPA
Partner
KPMG LLP
___
Mary Foelster, CPA
Director
AICPA Governmental Auditing
and Accounting
John Hudson, CPA
Moderator & President
Hudson Consulting Group, LLC
3
What We Will Cover
Webcast Rules and Protocols
GAQC Update
Technical Update (including practice
tips)
• OMB, GAO, FAC, Single Audit Quality,
HUD, AICPA, FASAB, FASB, and
GASB
Resources Available to You
4
Webcast Rules and Protocol
 Membership requirement for GAQC designated audit quality partner
 Executive Committee believes that it is important to get leaders of
governmental audit practices together at least once a year
 Ask questions…even if we cannot address them all today, we will
summarize and post to GAQC Member Discussion Forum Web site
(http://gaqc.aicpa.org/Community/Member+Discussion+Forum.htm)
 Webcast will be archived – encourage staff to view
 CPE available for viewing of live Webcast only
5
GAQC Update
6
GAQC Update
Current Membership Statistics
• Almost 1,200 member firms representing 50
states, Puerto Rico, and US Virgin Islands
• 83% of 2006 federal $$$ audited in
Clearinghouse by firms
• 47% of number of 2006 single audits
performed by firms in the Clearinghouse
• New stats will be generated using 2008
information when FAC database complete
7
GAQC Update
 Recap Activities Since the Last Webcast
• Significant increase in membership
• Increased recognition as a valuable resource by regulators
• Timely GAQC Alerts and GAQC Update Newsletters
• More conference calls and CPE
• Technical guidance
• Web site improvements (including resources such as dedicated HUD
Information page)
• Updated resources such as illustrative reports, peer review checklists,
links, etc.
• Member Discussion Forum
• Continuing to market Center to non-member firms
• Interacting with regulators and other stakeholders (Single audit
Roundtable and PCIE Task Forces)
• Membership compliance verification questionnaire
8
GAQC Update
Future Initiatives
•
•
•
•
•
•
•
•
Completion of Task Force activities relating to PCIE report
Continued advocacy efforts with federal agencies
Help members understand the effects of the Recovery Act
Tools to help members address deficiencies noted in PCIE
Report
Exploration of State Auditor membership
Additional member-only conference calls on audit quality topics
Continued CPE for member calls
Improve audit quality!
9
Technical Update
10
Technical Update
OMB
Federal Audit
Clearinghouse
(FAC)
GAO
Single Audit Quality
Update
HUD
AICPA Update
FASAB
FASB
GASB
11
Technical Update - OMB
 2009 Compliance Supplement (CS) will be available at
http://www.whitehouse.gov/omb/grants_circulars/
• Appendix V will list changes – You should review in detail
• Visit http://gaqc.aicpa.org/Resources/OMB+Circular+A133/OMB+Circular+A-133+2009+Compliance+Supplement.htm
for details on the programs that OMB had previously proposed
adding, deleting, and significantly revising
• OMB has stated that 2009 CS will be released in April
• Impact of Recovery Act
– 2009 CS likely to include an appendix with high-level
descriptions of ARRA requirements and instructions to
auditors
– Periodic updates
• Watch for GAQC Alert when CS is released
12
Technical Update - OMB
 Recovery Act Overview
• Federal government funneling billions of dollars to state and
local governments, much of which will be subject to single
audit
• Unprecedented Oversight and Transparency Mandated
– www.Recovery.gov (announcements, agreements, program
managers, governors, mayors)
– Recovery Board, GAO, Inspectors, whistleblowers
– Significant federal scrutiny via Quality Control Reviews (QCRs)
of single audits performed on entities receiving Recovery Act
money (primarily in 2010 – 2011 timeframe) – results to be
placed on Recovery.gov
– Single audit reporting packages to be made available on the
Internet
• Speed in grant awarding
13
Technical Update - OMB
Recovery Act
• Read the Initial Implementing Guidance at (issued
February 18, 2009):
http://www.recovery.gov/files/Initial%20Recovery%20
Act%20Implementing%20Guidance.pdf
– Also see GAQC Alert #106
• Read the Follow-Up OMB Implementing Guidance at
(issued April 3, 2009):
http://www.recovery.gov/sites/default/files/m09-15.pdf
14
Technical Update - OMB
Impact of Recovery Act going forward
• Some June 30, 2009, audits impacted
• Bigger impact likely on June 30, 2010, audits
• Consideration of changes that could impact major
program determination process
• Non-static Compliance Supplement
• Watch GAQC communications for further updates and
developments
15
Technical Update - OMB
 Recovery Act – Practice Tips
• Read OMB implementing guidance and related
GAQC Alerts
• Prepare talking-points for clients with following items:
– Need process for accepting Recovery Act funds
(should be a conscious management decision)
– Segregation of funds
– Appoint Recovery Act “Czar”
– Entire organization must be aware
– Be prepared to report back on spending
16
Technical Update - OMB
 Message Points to Clients Regarding Recovery Act Internal
Control Considerations
• Consider whether control procedures in place over federal
expenditures are appropriate, working properly, and designed to
prevent unallowable expenditures
• Consider whether additional controls and system requirements
will be needed to ensure that Recovery Act funds are able to
separately identified and tracked
• If applicable, consider whether new controls needed to meet the
stringent reporting requirements back to federal agencies
• If Recovery Act funds will be passed down to subrecipients, that
controls are in place to ensure appropriate subrecipient
monitoring and also whether any new controls will need to be
established related to new subrecipient reporting responsibilities
17
Technical Update – FAC
 New Data Collection Form & Electronic Filing
• Intended to be used for audit periods ending in 2008, 2009, and 2010
• Includes internal control terminology updates for significant deficiency
• Secondary Auditor information can be entered into new form for up to
12 additional auditors
• Reporting package can only be submitted electronically via Internet
Data Entry System (IDES), no more paper submissions will be accepted
• Reporting package submission must be in one PDF file format (locked
or unlocked)
• Paper submissions for fiscal year end between 2002 and 2007 will still
be accepted by FAC
• Instructions for new electronic submission process are located at
http://harvester.census.gov/fac/collect08/main_instruct.pdf
18
Technical Update – FAC
 New Data Collection Form & Electronic Submission
Process – Practice Tips
• No longer can access PDF of the actual DCF 2008 - 2010. Must
us a worksheet available at
http://harvester.census.gov/fac/collect08/2008Worksheet.pdf.
• Coordinate the electronic signature process early within your firm
and with the client.
• Submission is not complete until both the client & auditor hit the
“submit” button.
• Listen to GAQC Archived Member Conference Call on The
Revised 2008-2010 Data Collection Form & New Electronic
Submission Process
19
Technical Update - GAO
 Single Audit Study Results
 Recovery Act Activities
 SAS 115 Interim Guidance
 Potential Future Revisions to Independence Standards
and Corresponding Q&A Guidance
• Nothing final expected during the next year
20
Technical Update - GAO
 GAO single audit study
• Follow-up to PCIE study; although broader
• Issued in April 2009; included 3
recommendations
• Report titled, Single Audit: Opportunities Exist
to Improve the Single Audit Process and
Oversight, and can be found at:
http://www.gao.gov/new.items/d09307r.pdf?s
ource=ra
21
Technical Update - GAO
 Designate an entity or group to (1) evaluate and comprehensively
monitor the single audit process government-wide, (2) assess the
efficiency and effectiveness of how agencies carry out their single
audit responsibilities, and (3) identify additional guidance and
resources needed to carry out single audit requirements;
 Designate a federal workgroup to evaluate the current single audit
process to identify simplified alternatives for meeting the
accountability objectives of the Single Audit Act for the audits of
small entities, while achieving the proper balance between risk and
cost-effective accountability for the smallest to the largest entities;
and
 Monitor the status of OMB workgroups, AICPA task forces, and
NASBA referral project activities, and evaluate completed actions
and their impact on addressing the PCIE report recommendations to
improve single audit quality.
22
Technical Update - GAO
SAS No. 115 Implications
• GAO has issued interim guidance on its Web site
saying that new definitions can be used in Yellow
Book reporting
(http://www.gao.gov/govaud/icguidance0811.pdf)
Actual standards to be updated later
See GAQC Alert No. 93
Governmental Audit Quality Center (GAQC)
developing updated Yellow Book report
illustrations – Watch for GAQC Alert
23
Technical Update - GAO
 Recovery Act Activities
• The Recovery Act tasks GAO with a range of responsibilities to
help promote accountability and transparency and ensure that
these funds are used as specified. Among other efforts, GAO will
be:
– conducting bimonthly reviews on how funds are used by selected
states and localities (their focus is on16 states and the District of
Columbia, which contain about 65 percent of the U.S. population
and are estimated to receive about two-thirds of the
intergovernmental grants funds available through the Recovery Act)
– reviewing specific areas, such as trade, education, small business,
and health care; and
– commenting on reports filed by fund recipients.
• GAO's oversight work on the Recovery Act will be published on
its Web site at: http://www.gao.gov/recovery/
• Testifying at numerous Senate hearings
24
Technical Update – Single Audit Quality
 PCIE Report Update – AICPA Response
• Archived Center call, An Overview of the Results of the
National Single Audit Sampling Project, can be found on
GAQC Web site under the Resources tab
• Task Forces formed to examine the study's detailed findings
and recommendations for the AICPA as follows:
– Sampling Issues In A Single Audit Environment
– Internal Control And Compliance Responsibilities In A Single
Audit Environment
– Schedule Of Expenditures Federal Awards Reporting Issues
– Reporting Audit Findings In A Single Audit
– Single Audit Training Needs And Continuing Professional
Education Evaluation
– Peer Review
– SAS 74
25
Technical Update – Single Audit Quality
The latest on the Sampling TF:
• New Sampling chapter getting closer
– In review process and expected to be included in
the 2009 AICPA GAS/A-133 Guide
– Topics include:
▪
▪
▪
▪
▪
▪
Statistical vs. nonstatistical approach
Attribute vs. monetary sampling
Population considerations
Sample sizes and tables
Dual-purpose testing
Deviations
– Effective date?
26
Sample Sizes
Controls Testing
• 90-95% confidence
• Plan for zero exceptions
• Significance/risk of deviation of control
– What is potential risk is to the compliance
requirement
– Complexity of the control
27
Sample Sizes
Minimum samples for populations >250 - CONTROLS
Importance / Significance of
Control Being Tested
Minimum Sample Size
0 deviations tolerated
Very Significant and High Risk of
Deviation
Very Significant and Low Risk or
Deviation
Or
Moderate Significant and High
Risk of Deviation
Moderately Significant and Low
Risk of Deviation
60
40
25
28
Sample Sizes
Compliance Testing for each Direct and
Material Compliance Requirement
• Other evidence obtained
– Risk assessment procedures
– Important item testing
• Determine the risk of material noncompliance
– Inherent risk assessment
– Controls testing results—control risk assessment
29
Sample Sizes
Minimum samples for populations >250 – COMPLIANCE
Desired Level of Assurance
(Remaining Risk of Material
Noncompliance)
Minimum Sample Size
High
60
Moderate
40
Low
25
30
Sample Sizes
Small Populations
Frequency &
Population Size
Sample Size
Quarterly (4)
2
Monthly (12)
2-4
Semimonthly (24)
3-8
Weekly (52)
5-9
31
Technical Update – Single Audit Quality
Sampling TF – Practice Tips
• Listen to the archived GAQC Member Call on
Sampling in a Single Audit Environment
• Do not wait for final single audit sampling guidance
to re-look at your sample sizes
• Use general AICPA Sampling Audit Guide as a
resource
• Document rationale
• Properly identify the population
• Sampling is NOT a default
32
Technical Update – Single Audit Quality
 The latest on the Internal Control and Compliance TF:
– Revised 2008 GAS/A133 Audit Guide chapter on internal
control to clarify auditor responsibility and more closely
align with risk assessment standards
– Reordered chapters in the GAS/A133 Guide to mirror
workflow
– Clarified definition and use of “applicable” compliance
requirement vs. “direct and material” compliance
requirement
– Will re-look at chapter on internal control and compliance
for 2009 to determine if additional changes needed to
further improve the guidance
33
Technical Update – Single Audit Quality
 The latest on the Internal Control (IC) and Compliance TF:
• Practice Aids for:
– Documenting direct and material compliance requirements
– Documenting IC (narrative & checklist)
– Dual-purpose testing of IC and Compliance
• Examples of completed Practice Aids of several of the 14
types of compliance requirements
• Getting ready to put Practice Aids into review with Auditing
Standards Board (ASB) team
• Federal review after that
• Draft of Practice Aids for documenting I/C available at:
http://gaqc.aicpa.org/NR/rdonlyres/9D61BDFB-DDF4-4DD1-BE88DDBCA2443B0D/0/Handouts.pdf
34
Technical Update – Single Audit Quality
 Internal Control and Compliance TF – Practice Tips
– Listen to GAQC Member Call on Internal Control
Considerations in Single Audits
– Testing compliance gives indirect evidence on controls,
but cannot serve as the basis for assessing controls as
operating effectively
▪ Controls: What did entity do to ensure compliance?
▪ Compliance: Did entity comply?
– Ensure dual-purpose testing is properly documented
▪ Properly identify compliance tests & controls tests
– Internal control must be continually reevaluated
throughout the audit process
– Tickmark/Procedure Description for an Allowability Test
– Watch for GAQC Alert announcing availability of the final
Practice Aids
35
Technical Update – Single Audit Quality
 The latest on the Schedule of Expenditures of Federal
Awards (SEFA) TF:
• Made revisions to Chapter 7 of the 2008 GAS/A133 Guide to
clarify the auditor’s responsibilities as it relates to the SEFA
• Developed the following Practice Aids for auditors:
– Illustrative SEFA Audit Program
– Illustrative SEFA Disclosure Checklist
• Developed the following Practice Aids for clients:
– Illustrative SEFA Disclosure Checklist
– Illustrative form to assist clients in gathering needed information
for each federal program they receive
• Practice Aids reviewed and cleared by AICPA ASB team
• Next step is final federal review
36
Technical Update – Single Audit Quality
 SEFA Practice Tips
• Communicate with clients who have difficulty in preparing the
SEFA early in the planning process about potential control
deficiencies associated with not being able to prepare the
SEFA
• Document any control deficiencies identified during the audit
and conclude whether they are required to be reported
• Document your procedures
• Make sure SEFA includes all required elements
• Recovery Act considerations
• Listen to the archived GAQC Member Call on Schedule of
Expenditures of Federal Awards Reporting Issues &
Suggested Procedures
• Watch for GAQC Alert announcing availability of the Practice
Aids
37
Technical Update – Single Audit Quality
The latest on the Findings TF:
• Preparing illustrative findings Practice Aids to help
ensure all required elements captured:
– Yellow Book findings
– A-133 findings
– Both internal control and compliance related findings
• Examples of actual completed findings write-ups
• Upon completion of Practice Aid development, ASB
team and federal clearance needed
38
Technical Update – Single Audit Quality
 Findings TF – Practice Tips
• Document reasons if decide not to report documented
exceptions (they should be good ones)
• Emphasis on questioned costs
• Educate staff and partners about the importance of the
Schedule of Findings and Questioned Costs (SFQC)
• Include a “cold” review as part of the reporting process to
review the SFQC and major program work to ensure they tie
out
• Start with a blank “pro forma” of the SFQC
• Ensure your findings don’t include private information
(particularly important with changes that will make reporting
packages public on Clearinghouse Web site)
39
Technical Update – Single Audit Quality
The latest on the Training and CPE TF:
– Discussed the PCIE recommendation for prerequisite
single audit training to determine best practice training
– Developed a best practice training curriculum along with a
related white paper and submitted it to OMB for its
consideration in developing any future training
requirement
– Paper submitted to OMB includes detail on hours needed
at each staff level, a suggested "grandfathering" provision,
delivery guidance, question and answer format
implementation guidance, and an introductory narrative
40
Technical Update – Single Audit Quality
Training & CPE TF - Practice Tips
• Ensure your single audit staff gets appropriate level single
audit and Yellow Book training
• Review the PCIE report with special emphasis on the
deficiencies noted
• As a team, review the Compliance Supplement
• Review any archived events on the GAQC website that are
applicable to your audit engagements
• Ensure that Managers, Partners and “cold” reviewers on
single audit engagements view the 2009 Webcast
• Share the GAQC alerts and newsletters with single audit staff
• If your clients receive Recovery Act funding, be sure staff
appropriately trained in any new requirements
41
Technical Update – Single Audit Quality
The latest on remaining TFs:
• Peer Review TF
– Meeting held with multiple federal agencies
– Follow-up steps
– Possible enhancements to the related peer
review checklists
• SAS No. 74 TF (to be discussed in AICPA
Auditing Standards section)
42
Technical Update – Single Audit Quality
Other Practice Tips
• Invite your clients to listen to an archived GAQC Call on
Preparing for Your Single Audit: An Auditee Perspective
• Stay current and communicate with staff
• Take fresh look at documentation policies
• Develop standard documentation for areas that are known to be
problem areas
• Keep up with what happening on Recovery Act initiatives
• Consider concurring partner review
– If you do this, ensure partner has GAS/A133 experience
• Use peer review checklists as a tool
43
Federal Workgroups
• Revisions to A-133 and AICPA Guidelines to report audit findings
• Revisions to A-133, AICPA Audit Guide and OMB Compliance
Supplement to document the required compliance testing
• Revisions to A-133 and AICPA for audit testing and sampling
• Revisions to A-133 to require SA training. Development of training
curriculum Review of suspension & debarment process and identify
alternative methods to address unacceptable audits
• Coordination with other SA constituencies for sanctions and
punitive actions for substandard audits. Revisions to A-133 to any
proposed sanction language
• Coordination with PCIE to issue uniform standards on QCRs
• The New and Improved Single Audit Process
44
Technical Update - HUD
 Consolidated Audit Guide Revisions in Process
 GAQC Alert No. 96, Guidance on PHA Completion of the FDS and
Related Auditor Reporting
 GAQC Alert No. 104, Additional Guidance on PHA Completion of
the FDS and GAQC Releases Related Illustrative Auditor Reporting
Guidance
 See GAQC HUD Information page (under the Resources tab on
GAQC Web site) for details on FDS guidance and completed audit
guide chapters
 Proposed IPA Roster - Update
• HUD staff announced that they are holding the proposed rule in
abeyance.
 Listen to an archived GAQC Member Call on the New Multifamily
Housing Chapter of the HUD Consolidated Audit Guide
45
Technical Update - AICPA
Auditing Standards
•
•
•
•
•
•
SAS 115
Clarity Project
Proposed changes SAS 74
Exposure drafts on Supplementary Information
SQCS 7
SLG, NPO, and GAS/A-133 Guides
46
Technical Update - AICPA
SAS 115 - Communicating Internal Control
Related Matters Identified in an Audit
• Effective for audits of financial statements for periods
ending on or after December 15, 2009.
• GAO issued interim guidance
(http://www.gao.gov/govaud/icguidance0811.pdf)
• OMB has not changed definitions yet; don’t update
your single audit reporting
• GAQC working with OMB to resolve
• See GAQC Alert Nos. 92 and 93
47
Technical Update - AICPA
SAS 115 - Communicating Internal Control
Related Matters Identified in an Audit
• New definitions:
– A material weakness is a deficiency, or combination of
deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the
entity's financial statements will not be prevented, or detected
and corrected on a timely basis.
– A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention
by those charged with governance.
48
Technical Update - AICPA
Clarity
• Background
– Discussion paper issued March 2007
– ASB considered comments received and approved direction
forward August 2007
• Goals:
– Address concerns over length and complexity of standards
– Make standards easier to read, understand and implement
– Will lead to enhancements in audit quality
49
Technical Update - AICPA
Clarity
• Project will take 3 years to complete
• During this period, few new standards will be issued
– Only those that are needed to respond to emerging issues
(e.g. SAS 74)
• “Clarified standards” will be exposed over the next
few years and finalized
– Target date for final approval June 2010
50
Technical Update - AICPA
Proposed SAS, Compliance Audits
• Supersedes AU section 801, Compliance Auditing
Considerations in Audits of Governmental Entities and
Recipients of Governmental Financial Assistance (SAS 74)
• Provides additional auditing guidance when an audit of
compliance is performed in connection with a GAAS and
GAGAS audit of financial statements (i.e., a single audit or HUD
Guide audit)
• Comment period ends April 30, 2009
• Issued in response to PCIE report
• Would be effective for compliance audits for fiscal periods
ending on or after June 15, 2010; earlier application is permitted
51
Technical Update - AICPA
Specifically, the proposed SAS would revise AU sec 801 by:
 clarifying its applicability and updating it for changes in the
compliance audit environment
 establishing a requirement for the auditor to adapt and apply GAAS,
including the risk assessment and fraud standards (all of which
primarily address audits of financial statements), to a compliance
audit and providing guidance on how to do so
 identifying the AU sections that are applicable to a compliance audit
and those that are not applicable
 defining terms related to a compliance audit
 providing guidance on the factors an auditor may consider in
evaluating whether an entity has materially complied with the
applicable compliance requirements
 identifying the elements to be included in an auditor’s report on
compliance
52
Technical Update - AICPA
Proposals on Supplementary Information
• ED of proposed SASs Required Supplementary
Information; Other Information in Documents
Containing Audited Financial Statements; and Other
Information in Relation to the Financial Statements as
a whole
• Comments due on May 15, 2009.
• Proposed effective dates for audit engagements
periods beginning on or after December 15, 2009 with
early application permitted.
53
Technical Update - AICPA
Auditing Standards
• SQCS 7
– Issued October 2007
– Supersedes all previous SQCSs
– Effective as of January 1, 2009
– Convergence with International Standard on
Quality Control
54
Technical Update - AICPA
Auditing Standards
• SQCS 7 - Required Elements of QC System
– Leadership responsibilities for quality within the
firm (the “tone at the top”)
– Relevant ethical requirements
– Acceptance and continuance of client relationships
and specific engagements
– Human resources
– Engagement performance
– Monitoring
55
Technical Update - AICPA
Auditing Standards
• SQCS 7 – Practice Tips
– Read SQCS 7
– Read AICPA Practice Aid: Establishing and Maintaining a
System of Quality Control for a CPA Firm’s Accounting and
Auditing Practice
(http://www.aicpa.org/centerprp/PA_QualityControl.htm)
– Read Professional Code of Conduct
– Read Quality Control Questionnaire – Peer Review
– Listen to Live or Archived Upcoming GAQC Member Call on
Thursday, May 14, 2009, The New Standards on Quality
Control, 1:00 – 3:00 PM (ET).
56
Technical Update - AICPA
Status of A&A Guides
• GAS/A133 Guide
– Updates being drafted
– May include sampling chapter
– More guidance on avoiding PCIE Report
deficiencies
– Expected released date of Fall 2009
57
Technical Update - AICPA
Status of A&A Guides
• State and Local A&A Guide
– In production and available in end of June
– New GASB standards that become effective this year
– Footnotes to identify places where GASB standards issued
but not yet effective
• NPO A&A Guide
– In production and available in end of June
– Updated FASB references for codification
– Task force working on complete overhaul to the Guide to
address many issues that have accumulated
» 2-4 year timeframe
58
Technical Update - AICPA
AICPA Audit Risk Alerts
• Governmental auditing environment is fluid,
so watch for these publications as they will
have the latest information available at time of
printing:
– GAS/A-133 ARA
– NPO ARA
– SLG ARA
– HC ARA
59
Technical Update – FASB
NPO Update
• FAS 117-1, Endowments of Not-for-Profit Organizations:
Net Asset Classification of Funds Subject to an Enacted
Version of the UPMIFA, and Enhanced Disclosures
• FAS 157 Fair Value Activity
• FAS 124 Other-Than-Temporary Impairments (OTTI)
• Proposed FSP FAS 115-a, FAS 124-a, and EITF 99-20-b,
Recognition and Presentation of Other-Than-Temporary
Impairments
• FSP FIN 48-3, Effective Date of FASB Interpretation No.
48 for Certain Nonpublic Enterprises
• Proposed FAS No. 162, The Hierarchy of Generally
Accepted Accounting Principles (Codification)
60
Technical Update – FASAB
Recently Issued and may affect your future audits:
 SFFAS 33 OPEB (effective for periods beginning after 9/30/09)
 Concept Statement 6 – Supplementary Information
 Staff Implementation Guidance 31.1, Guidance for Implementation
of Statement of Federal Financial Accounting Standards 31,
Accounting for Fiduciary Activities (effective upon issuance)
Exposed for Comment:
 ED on the GAAP Hierarchy for Federal Entities; comments due
2/2/09
 ED on Social Insurance; comments due 2/9/09
 ED on Estimating the Historical Cost of General Property, Plant, and
Equipment; comments due 1/30/09
61
Technical Update – GASB
May affect your audits for the first time this year:
 Statement 45—OPEB Employers (Phase 3, 12/31/09)
 Statement 52—Land and Other Real Estate Held as Investments by
Endowments (6/30/09)
 Statement 55—The Hierarchy of Generally Accepted Accounting Principles
for State and Local Governments (effective upon issuance 3/1/09)
 Statement 56—Codification (effective upon issuance 4/16/09)
May affect your audits in future years:
 Statement 51—Accounting and Financial Reporting for Intangible Assets
(6/30/10)
 Statement 53—Accounting and Financial Reporting for Derivative
Instruments (6/30/10)
 Statement 54 —Fund Balance Reporting and Governmental Fund Type
Definitions (6/30/11)
62
Technical Update – GASB
 Derivative Instruments Implementation Guide Issued on
4/21/09
 Conceptual Framework—Recognition and Measurement
Attributes
 Public/Private Partnerships
 Listen to an archived GAQC Member Call on GASB
Update
63
AICPA and GAQC Audit
Resources
64
AICPA Audit Resources
 AICPA Conferences
• NPO Industry Conference (June 10-12, 2009 in Washington, DC.)
• Government A&A Update Conference (August 10-12, 2009 in
Washington, DC and again on September 20-22, 2009 in Denver, CO)
• Government and NPO Training Program (October 26-28, 2009 in
Atlanta, GA)
 8 hours of Single Audit Training developed by GAQC to be held at
each National Conference as follows:
• NPO Industry Conference on June 10, 2009 (add-on day)
• Government A&A Update Conference on August 12, 2009 in DC and
September 22, 2009 in CO (add-on day)
• Government and NPO Training Program (part of main program)
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AICPA and Other Resources
AICPA Webcasts
AICPA CPExpress
Other CPE courses, including State Society
courses
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AICPA Audit Resources
Auditing & Accounting Guides and Audit Risk
Alerts
•
•
•
•
Government Auditing Standards and Circular A-133
State & Local Governments
Not for Profit Organizations
Health Care Organizations
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GAQC Audit Resources
 GAQC Web site (www.aicpa.org/GAQC)
 Archived Alerts and Update Newsletters
(www.aicpa.org/GAQC/Resources/)
 Archived Conference Calls, e.g., HUD, Auditee Call on Single Audit, New
DCF, IC, Sampling, SQCS 7, etc. (www.aicpa.org/GAQC/Resources/)
 Archived Webcast (have your staff view at
(www.aicpa.org/GAQC/Resources/) )
 Flowcharts
 Illustrative Report Examples
 Nonauthoritative practice aids
 Future updates on Recovery Act activities and other important single audit
information
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GAQC Audit Resources
Member discussion forum
Links to other key organizations, news items,
and documents
Articles
U.S. Standard Activities Summary
Member listing
Membership Q&A
Updated and expanded marketing toolkit
Governmental event and conferences summary
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Summary & Questions
2009
Governmental
Audit Quality Center
Annual Update Webcast
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Thank You
For Participating!
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Upcoming AICPA Webcasts
For a complete listing of all AICPA Webcasts, please look at
our 2009 calendar at www.cpa2biz.com/webcasts
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