4 posts categorized "Ahava Goldman, CPA" Feed

A Golden Opportunity: Performing IPSAs of Conflict Minerals Reports

Mound-of-goldHave you read about conflict minerals in the news? Apple Inc. recently stated in its supplier responsibility report that the company’s entire supply of tantalum used in its products was verified as conflict free, as reported by the Los Angeles Times. The report also noted that “we’re pushing our suppliers of tin, tungsten, and gold just as hard to use verified sources.”

This news relates to the U.S. Securities and Exchange Commission’s final rule issued in August 2012 which required public companies to disclose their use of “conflict minerals” in their manufacturing processes and supply chains. The term “conflict minerals” describes certain minerals—tantalum, tungsten, tin and gold—that are mined in the Democratic Republic of the Congo and its surrounding areas. Public companies might be required to file a Conflict Minerals Report, which may also be subject to an Independent Private Sector Audit. As a CPA, you are the premier provider of such an audit and the AICPA provides resources to help with inquiries you may be receiving from your clients.

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Clarifying Clarified Auditing Standards on Group Audits

Group -auditAs I promised in my blog post “3 Things You Need to Know About Clarified Standards,” here’s an analysis on the changes wrought by the new clarified auditing standards on group audits.  

As I said previously, the key point here is to realize when this section, AU-C 600, Special Considerations--Audits of Group Financial Statements (including the Work of Component Auditors) applies. It applies not only when other auditors perform part of the audit, but whenever the financial statements include financial information of components, such as equity investees, subsidiaries or other business entities and activities that are included in the group financial statements. Even if you are the only auditor, if the financial statements include financial information that is consolidated, combined or aggregated from a separate financial accounting system, the provisions of AU-C 600 apply.

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3 Things You Need to Know About Clarified Standards

Crystal-clear-vision-clarityWith only one AU section left to clarify, the Auditing Standard Board’s Clarity Project is substantially complete. During the past year, I have been traveling around the country talking about the 47 “AU-C” sections that have been clarified and converged with corresponding International Standards on Auditing. Here are some of the major points that you need to know about these standards and their impact:

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ASB Reaches Major Milestone in Clarity Project

Crystal clear vision clarityIn 2004, the AICPA Auditing Standards Board began work to clarify Statements on Auditing Standards, Statements on Quality Control Standards and Statements on Standards for Attestation Engagements to make them easier to read, understand and apply. At the same time, the ASB undertook a project to converge its standards with those issued by the International Audit and Attestation Standards Board.

Last week, the ASB announced it has achieved a major milestone in the Clarity Project with the issuance of SASs Nos. 122–124. Together with the issuance of SASs Nos. 117-120, 44 (out of 47) clarified SASs have been completed and issued.

Most Clarified SASs become effective for periods ending on or after Dec. 15, 2012. For exceptions to this effective date, view the AICPA’s resource which highlights those standards with a different effective date. This is the first complete recodification of U.S. generally accepted auditing standards since 1972.

While the main goal of the Clarity Project is make U.S. GAAS easier to read, understand and apply, another goal was to converge with international standards while avoiding unnecessary differences with the auditing standards issued by the Public Company Accounting Oversight Board. Some differences are necessary as the auditing standards are used for audits of public companies while the SASs apply to audits of private companies.

So what does the Clarity Project mean for you?

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