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 »

5 Things You Should Tell Your CPA

And The Sooner The Better Construction is a risky business. Things can go wrong – even with the best-managed companies. Hoping the problem will work itself out is a natural knee-jerk reaction, but such delay may exacerbate it. Additionally, other situations and concerns may arise in the ordinary course of business. Some of these issues may necessitate outside assistance. We’ve listed five occasions that warrant the immediate attention of your external CPA. But, of course, the best way to find out is to give a phone call to your trusted advisor and get their opinion. You are surprised by a Read More »

Construction Company Alert – Warning Signs

Danger Will Robinson, Danger! Construction is a risky business. Not only because of the occupational hazards associated with the industry, but it’s also risky from a business perspective. New companies, of course, are vulnerable, but even construction companies in business for thirty, forty, fifty years or more are not immune to business failures. I’ve witnessed strong companies, rock-solid for decades, lose half their equity in a year, and be on the rocks with their lenders and surety for years following. It can and does happen. But there are warning signs – some subtle and some in full view, but easy Read More »
Show Buttons
Hide Buttons