TIS Section 9110, Special Reports
Transcription
TIS Section 9110, Special Reports
December 2012 AICPA Technical Practice Aids TIS Section 9110, Special Reports .20 Effective Date of AU-C Section 905 in a Compliance Audit Inquiry—AU-C section 905 is “effective for the auditor’s written communications related to audits of financial statements for periods ending on or after December 15, 2012. For all other engagements conducted in accordance with GAAS, this section is effective for the auditor’s written communications issued on or after December 15, 2012.” Which effective date applies in a compliance audit performed pursuant to AU-C section 935, Compliance Audits (AICPA, Professional Standards), and Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations (Circular A-133), in which the financial statements of an entity are for a period prior to December 15, 2012 (for example, as of and for the year ended September 30, 2012), but the opinion on compliance and reporting on internal control over compliance (the Circular A133 report) relating to that same period is issued after December 15, 2012 (for example, the Circular A-133 report is issued on January 15, 2013)? Reply—Some auditors view the compliance audit performed pursuant to AU-C section 935 and Circular A-133 as related to the audit of the financial statements because Circular A-133 also requires a financial statement audit. Other auditors view the compliance audit as being unrelated to the financial statement audit. Generally, both views may be reasonable. Therefore, the effective date used depends on the auditor’s professional judgment of the circumstances. If, in the auditor’s professional judgment, the compliance audit relates to the audit of the financial statements, AU-C section 905 would not apply and the auditor would use the restricted use alert language required by AU section 532, Restricting the Use of an Auditor’s Report [SAS No. 87], in the Circular A-133 report. However, if, in the auditor’s professional judgment, the compliance audit is unrelated to the audit of the financial statements, AU-C section 905 applies and the auditor’s Circular A-133 report would use the intended use alert language required by paragraph .11 of AU-C section 905. It should be noted that a Circular A-133 report for periods ending on or after December 15, 2012, should implement the intended use alert language required by paragraph .11 of AU-C section 905. aicpa.org/FRC Finally, with regard to the reporting issued to satisfy the requirements of Government Auditing Standards on internal control over financial reporting, and compliance and other matters, which is also required in a Circular A-133 compliance audit, such reporting is related to the audit of the financial statements. Therefore, the auditor would continue to use the restricted use alert language required by AU section 532 [SAS No. 87] when reporting on periods prior to December 15, 2012. [Issue Date: December 2012.] DISCLAIMER: This publication has not been approved, disapproved or otherwise acted upon by any senior technical committees of, and does not represent an official position of, the American Institute of Certified Public Accountants. It is distributed with the understanding that the contributing authors and editors, and the publisher, are not rendering legal, accounting, or other professional services in this publication. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Copyright © 2012 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775. All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please email [email protected] with your request. Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Farm Road, Durham, NC 27707-8110. aicpa.org/FRC