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AICPA releases new Technical Practice Aids

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Jul 01, 2013

Last week, the AICPA published new guidance in the form of Technical Questions and Answers.

Question .42 of TIS Section 8800, Audits of Group Financial Statements and Work of Others, and Question .08 of TIS Section 9100, Signing and Dating Reports, have been posted to the AICPA's Web site. The guidance is considered nonauthoritative and is not included in the FASB Accounting Standards Codification.

TIS Section 8800, Audits of Group Financial Statements and Work of Others

TIS Section 8800.42, Component Audit Report of Balance Sheet Only, states that a “component auditor’s report on a balance sheet only does not provide sufficient appropriate evidence on revenues, expenses, and cash flows of the component to enable the group engagement partner to make reference” to the audit of the component’s balance sheet in the report on the group financial statements. TIS Section 8800.43, Using Another Audit Firm to Perform Inventory Observations, indicates that an outside accounting firm that performs an inventory observation is not considered a component auditor.

TIS Section 9100, Signing and Dating Reports

TIS Section 9100.08, Audit Firm With Multiple Offices on Their Company Letterhead and Effect on Report, states that if a firm’s letterhead includes multiple office locations, the auditor would need to indicate in its report the city and state where it practices.

The Technical Practice Aids are available on the AICPA’s recently issued technical questions and answers page on the AICPA's Web site (AICPA membership required).

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