aicpa generally accepted auditing standards

AICPA GENERALLY ACCEPTED AUDITING STANDARDS UPDATE

Question: AU-C section 570 refers to the phrase substantial doubt about an entity’s ability to continue as a going concern but does not define it how should an auditor apply this term? Auditors are required to consider applicable interpretive publications in planning and performing an audit because interpretive publications can be relevant to the proper application of GAAS.)Įach of the four interpretations presents a Question and a responding Interpretation, and each is summarized below:

Auditing interpretations of GAAS are included in AU-C sections. (Note: Auditing interpretations of generally accepted auditing standards (GAAS) are interpretive publications they are issued under the authority of the ASB, and are recommendations on the application of GAAS in specific circumstances. 126 addresses the auditor’s responsibilities with respect to evaluating whether there is substantial doubt about the entity’s ability to continue as a going concern. The standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.

AICPA GENERALLY ACCEPTED AUDITING STANDARDS UPDATE

In 2014, the FASB released Accounting Standards Update (ASU) No.

126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted) (AICPA, Professional Standards, AU-C Section 570). Then I'll be able to get some fast action on my loan application.On January 24, 2015, the AICPA Auditing Standards Board (ASB) issued four auditing interpretations to address issues related to the SAS No. I would appreciate it if you would write out the standard audit report and attach it to the financial statements. You are now a CPA, and you know everything that's happened in this company and everything that's included in these financial statements, and you know they give a fair picture. The owner then made the following request: 'Joe, I am applying for a substantial bank loan, and the bank loan officer insists upon getting audited financial statements to support my loan application. On January 7, Rezzo delivered the annual financial statements as his final act for White Company. He notified White that he would no longer be available after preparing the year-end financial statements. However, he continued to perform all accounting work for White Company during his 'leisure time.' Two years later, Rezzo received his CPA certificate and decided to give up his part-time work with White Company. Upon graduation, Rezzo passed the CPA examination and joined the audit staff of a national CPA firm. Joe Rezzo, a college student majoring in accounting, helped finance his education with a part-time job maintaining all accounting records for a small business, White Company, located near the campus.

Aicpa generally accepted auditing standards