Employee Retention Tax Credit

Financial Statement Presentation of Government Grants Our last blog, dated December 21, 2021, made mention of the employee retention tax credit (“ERTC”). This tax credit originated from no less than three separate acts of Congress over a twenty-one-month period in 2020 and 2021. The legislative purpose was to provide economic assistance to entities suffering from the COVID-19 pandemic. While this series of laws tended to make the ERTC more generous, it also added much confusion and complexity. Not a big surprise when it comes to such a widespread government program. The structure of the ERTC was to provide refundable payroll Read More »

A Few Predictions for 2022

Hold on to Your Hat As we approach the end of 2021, we find ourselves two years into a “once-in-a-century” pandemic. Unfortunately, at the time of this blog, there is no apparent clear path to an end. Instead, the virus seems to have a life of its own, as evidenced by its various mutations. The pandemic, and our response to it, has precipitated business closures, supply chain disruptions, travel issues, employee shortages, work stoppage, interruptions in the education of our children, anger, and, most tragically, the loss of life and health. On the macro level, collectively, this has led to Read More »

SAS 145 – New Risk Assessment Standards

More Clarifications In October 2021, the AICPA issued SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. SAS 145 is effective for audits of financial statements for periods ending on or after December 15, 2023. Early implementation is permitted. SAS 145, which supersedes SAS 122, section 315 of the same title, and amends various other sections in AICPA Professional Standards, enhances or clarifies specific areas of an auditor’s risk assessment while providing new performance requirements and new terminology in other areas. Mine Field. For several years now, the subject of the auditor’s risk assessment Read More »

Changes To ERISA Audits And Reporting

The Times They Are-a-Changin, Part II In July 2019, the AICPA issued SAS 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. SAS 136 is effective for periods ending on or after December 15, 2021. The purpose of SAS 136 is to “clarify” the auditor’s responsibility in forming an opinion on ERISA plan financial statements. It also addresses the form and expands the content of the auditor’s report. The clarifications were driven, in part, in response to a study by the U.S. Department of Labor (“DOL”) that found major deficiencies in a significant Read More »

Changes To The Non-Public Auditor’s Report

The Times They Are-a-Changin The AICPA has issued several Statements on Auditing Standards (“SASs”) that, on the effective date, will impact the auditor’s report. These changes are included in SAS 134 through 140 and are effective for periods ending on or after December 15, 2021, per SAS 141. Therefore, they will initially be effective for the calendar year 2021 audits. Early implementation is permitted. Usually, busy private business owners don’t need to concern themselves with the SASs. Why should they? However, owners should be aware of these recently issued SASs because crucial decisions must be about engaging the auditor to Read More »
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