Gasb yellow book updates for school districts presented by david s hampton cpa
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GASB & Yellow Book Updates for School Districts Presented by David S. Hampton, CPA. GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.

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Gasb yellow book updates for school districts presented by david s hampton cpa

GASB & Yellow Book Updates for School DistrictsPresented byDavid S. Hampton, CPA


Gasb yellow book updates for school districts presented by david s hampton cpa

GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

  • Purpose – to improve financial reporting by standardizing the presentation of deferred inflows and outflows of resources and their effects on a government’s net position.

    • Concepts Statement #4, Elements of Financial Statements, identifies transactions that result in the consumption or acquisition of net assets in one period that are applicable to future periods as deferred outflows and inflows of resources, and distinguishes them from assets and liabilities.

    • Concepts Statement #4, Elements of Financial Statements, identifies net position as the residual of all other elements presented in the statement of financial position (difference between 1) assets and deferred outflows of resources and 2) liabilities and deferred inflows of resources).

    • Governments are encouraged to present the statement of net position in a format that displays assets, plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position. Balance sheet format may be used as well.

    • Netting of deferrals is not allowed. Report separately deferred outflows and deferred inflows. If outflows/inflows are grouped, the notes should disclose the components which make up balance sheet presentation.


Gasb yellow book updates for school districts presented by david s hampton cpa

GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

Components of Net Position

  • Net Investment in Capital Assets

    • Consists of capital assets, net of depreciation, reduced by the outstanding balances of debt/payables related to the acquisition, construction or improvement of those assets.

    • Deferred outflows (debt discounts & insurance contracts) and inflows (debt premiums) applicable should also be included. (Effective with GASB #65 implementation).

    • Unspent amounts of debt/deferred outflow should not be included in calculation of net investment in capital assets (example - unspent bond proceeds related to construction). Instead, reflected these amounts as a component of restricted or unrestricted (reduced by liabilities and deferred inflows of resources related to those assets).


Gasb yellow book updates for school districts presented by david s hampton cpa

GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

Components of Net Position

  • Restricted

    • Restricted assets reduced by liabilities and deferred inflows of resources related to those assets (i.e. restricted grant advances less unearned revenues/payables or unspent debt proceeds less related payables to be liquidated with restricted assets).

  • Unrestricted

  • Residual amount (i.e. assets, deferrals, liabilities not included in determination of net investment in capital assets & restricted component of net position).


Gasb yellow book updates for school districts presented by david s hampton cpa

GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

Financial Reporting Governmental Funds

  • Assets plus deferred outflows (if applicable) equals liabilities plus deferred inflows (if applicable) plus fund balance.

    Financial Statement Disclosures

  • Financial statements should provide details of different types of deferred amounts in the notes if significant components are obscured by aggregation. This is only required if the information is not displayed on the face of the financial statements.

  • If difference between deferred outflow or inflow of resources & balance of related assets & liabilities is significant, notes should disclose explanation of effect on net position.


Gasb yellow book updates for school districts presented by david s hampton cpa

GASB #63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

Effective Date

  • Periods beginning after December 15, 2011


Gasb 65 items previously reported as assets and liabilities

GASB #65 – Items Previously Reported as Assets and Liabilities

  • Purpose – to improve financial reporting by clarifying the appropriate use of the financial statement elements of deferred inflows and outflows of resources to ensure consistency in financial reporting.

    • The objective is to either 1) properly classify certain items previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or 2) recognize certain items previously reported as assets or liabilities as outflows of resources (expenses or expenditures) or inflows of resources (revenues).

    • Primarily impacts governmental activities, business-type activities, proprietary funds and fiduciary funds.

    • In governmental and proprietary funds, assets should be combined with deferred outflows of resources and liabilities should be combined with deferred inflows of resources for purposes of determining which elements meet criteria for major fund determination.


Gasb 65 items previously reported as assets and liabilities1

GASB #65 – Items Previously Reported as Assets and Liabilities

Refunding of Debt

  • For current and advance refunding resulting in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt should be reported as a deferred outflow or inflow of resources and recognized as a component of interest expense in a systematic manner over the remaining life of the old or new debt, whichever is shorter.

  • Reacquisition price – amount placed in escrow necessary to pay interest, principal on old debt with any call premium, if applicable.

  • Any premium or discount pertaining to the new debt issue is a separate item and should be amortized over the life of the new debt.

  • Issuance costs, other than portion related to prepaid insurance costs, should be recognized as an expense in the period incurred. Prepaid insurance costs should be reported as an asset and amortized over the life of new debt.


Gasb 65 items previously reported as assets and liabilities2

GASB #65 – Items Previously Reported as Assets and Liabilities

Nonexchange Transactions

  • Property taxes – if received or reported as a receivable before 1) the period for which taxes are levied or 2) the period when resources are required to be used or first permitted, should be reported as deferred inflows of resources.

  • Government-Mandated & Voluntary Nonexchange Transactions (including reimbursement-type or expenditure driven grants) – recourses received before the eligibility requirements are met (excluding time requirements) should be reported as liabilities by the recipient.

  • Exception – recourses received in advance related to a future period should be reported as a deferred inflow of resources (example - FY2014 grant received in FY2013).


Gasb 65 items previously reported as assets and liabilities3

GASB #65 – Items Previously Reported as Assets and Liabilities

Leasing and Lending Activities

  • Sales-Leaseback Transactions – any gain or loss should be recorded as a deferred inflow/outflow of resources and recognized over the lease term.

  • Initial Direct Costs of Operating Leases – expense in the period incurred.

  • Loan Origination Fees and Costs– recognized as revenue in period received except portion related to points which should be reported as a deferred inflow of resources and recognized as revenue over the duration of the loan. All other costs should be expensed in period incurred.

  • Commitment Fees– fees received for a commitment to originate or purchase a loan or group of loans should be recorded as a liability and recognized as revenue in the period of exercise. If unexercised, recognize upon expiration of the commitment.

  • If likelihood the commitment will be exercised is remote based on past experience, recognize in the period received.

  • Purchase of a Loan or Group of Loans – any fees paid/received – recognize in period loan(s) was purchased.


Gasb 65 items previously reported as assets and liabilities4

GASB #65 – Items Previously Reported as Assets and Liabilities

Regulated Operations (See GASB #62)

  • Required refunds – record as liabilities.

  • Regulatory rates establish to recover expected costs in the future – deferred inflow of resources and recognized revenues when expenses incurred.

    Revenue Recognition in Governmental Funds

  • Resources reported as assets that do not meet the availability criterion for recognition as revenue in the government fund financial statement and also do not meet the definition of a liability (resources available for spending in the current period) should be reported as a deferred inflow of resources.

    Use of the Term Deferred

  • The use of the term deferred should be limited to items reported as deferred outflows of resources and deferred inflows of resources. Board recommends using advances or unearned for other deferrals.


Gasb 65 items previously reported as assets and liabilities5

GASB #65 – Items Previously Reported as Assets and Liabilities

Effective Date

  • Periods beginning after December 15, 2012.

  • When accounting changes adopted, should be applied retroactively by restating financial statements, if practical, for all periods present. If not practical, the cumulative effect, if any, should be reported as a restatement of beginning net position or fund balance with note disclosure of the effect.

  • Provisions of the statement need not be applied to immaterial items.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 27

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Purpose – to improve the usefulness of information for decisions made by various users of state and local governments financial reporting whose employees both active and inactive are provided with pensions. In addition, to improve the information provided about pension-related financial support provided by certain nonemployer entities that make contributions to pension plans that are used to provide benefits to the employees of other entities.

  • This statement addresses accounting and financial reporting for pensions that are provided to employees of state and local governments through pension plans that are administered through trusts that have the following characteristics:

    • 1) Contributions are irrevocable;

    • 2) Plan assets are dedicated to providing pensions to plan members in accordance with the benefit terms; and

    • 3) Plan assets are legally protected from creditors.

  • Establishes standards for measuring and recognizing liabilities, deferred outflows and inflows of resources, and pension expenses/expenditures.

  • Identifies the methods and assumptions that should be used to project benefit payments for defined benefit pensions.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 271

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

  • Note disclosure and required supplementary information requirements.

  • Employers are classified in one of the following categories: 1) Single employers; 2) Agent employers; and 3) Cost-sharing employers.

  • Details the recognition and disclosure requirements for employers with liabilities to a defined benefit contribution pensions.

  • Addresses circumstances in which a nonemployer has a legal requirement to make contributions directly to a pension plan (special funding situations).


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 272

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Special Funding Situations

  • Special funding situations are defined as circumstances in which a nonemployer entity is legally responsible for making contributions directly to a pension plan that is used to provide pensions to the employees of another entity or entities and either:

    • The amount of the contributions for which the nonemployer entity legally is responsible is not dependent upon one or more events unrelated to pensions or;

    • The nonemployer is the only entity with a legal obligation to make contributions directly to a pension plan.

  • In special funding situations, the employer will recognize a pension liability and deferred outflows and inflows of resources related to the pension(s) with adjustments for the involvement of nonemployer contributing entities.

  • The employer will recognize its proportionate share of the collective pension expense, as well as additional pension expense and revenue for the pension support of the nonemployer contributing entities.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 273

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Cost Sharing Employers Defined Benefit Pensions

Determining proportionate share of the collective net pension liability

  • A liability should be recognized for the employer’s proportionate share of the collective net pension liability, measured as of the date no earlier than the employer’s prior fiscal year, consistently applied from period to period.

  • The employer’s proportion is a measurement of the proportionate relationship of the employer to all employers and all nonemployer contributing entities.

  • Multiplying the collective net pension liability by the employer’s proportion (%).

  • The employer’s proportion should be established as of the measurement date, unless the employer’s proportion is actuarially determined, in which the actuarial valuation may be used.

  • Liabilities for net pension liabilities associated with different pension plans may be displayed in aggregate.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 274

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Pension expense and deferred outflows and inflows of resources related to the pensions

  • Pension expense should be recognized for the employer’s proportionate shares of collective pension expense and collective deferred outflows and inflows of resources related to pensions.

  • Pension expense recognized in the current period (accrual basis statements) should consist of:

    • Proportionate share of net pension liability (difference between expected and actual experience) as of the measurement date recognized using a systematic and rational method over a closed period (average of the expected remaining service lives of all employees including both active & inactive employees).

    • Multiplying the collective net pension liability by the employer’s proportion (%).

    • Changes in proportion and assumptions – net effect of any changes in employer’s proportionate share and assumptions since the prior measurement date (recognized in the same manner as previous).

    • Difference between projected and actual earning on pension plan investments (recognized over a five year period).

    • Pension support provided by nonemployer contributing entities.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 275

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Measurement of the collective net pension liability, collective pension expense, and collective deferred outflows and inflows of resources related to pensions.

  • The liability of employers and nonemployers contributing entities to employees for defined benefit pensions (net pension liability) should be measured as the portion of the present value of projected benefit payments for active and inactive employee that is attributed to those employees’ past periods of service less the amount of the pension plan’s fiduciary net position.

  • The pension plan’s net position should be determined using the same valuation methods that are used by the pension plan for purposes of preparing its statement of fiduciary net position.

  • The total pension liability should be determined by an actuarial valuation as of the measurement date (one year prior to fiscal year-end) or the use of update procedures to roll forward to the measurement date amounts from an actuarial valuation as of a date no more than 30 months and 1 day prior to the employer’s fiscal year end. Actuarial valuation should be performed at least biennially. (More frequent valuations are encouraged).


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 276

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Measurement of the collective net pension liability, collective pension expense, and collective deferred outflows and inflows of resources related to pensions.

  • Unless otherwise specified by this Statement, the selection of all assumptions used in determining total pension liability should be made in conformity with Actuarial Standards of Practice issued by the Actuarial Standards Board.

  • Projection benefit payments should include all benefits to be provided to current active and inactive employees in accordance with the benefit terms and any additional legal agreements in force at the measurement date including the effects of postemployment benefit changes (i.e. COLAs, salary changes, and projected service)


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 277

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

  • Notes to financial statements – all cost-sharing employers

  • Pension plan description

    • The name of the pension plan, identification of plan administrators, and type of plan (i.e. cost-sharing pension plan).

    • A brief description of benefit terms including 1) employees covered; 2) types of benefits; 3) key elements of the pension formulas; 4) terms or policies with respect to postemployment benefit changes (i.e. COLAs); and authority under which benefit terms are established or may be amended.

    • A brief description of contribution requirements including 1) determining employer’s contributions (i.e. statute, contract, actuarial basis, etc.); 2) authority under which contribution requirements of employers, nonemployers, and employees are established or may be amended; 3) contribution rates ( in dollars or as a percentage of covered payroll) of those entities. Also, the amount of contributions recognized by the pension plan for the employer during the reporting period.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 278

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

  • Information about the employer’s proportionate share of the collective net pension liability

    • Significant assumptions and other inputs used to measure the total pension liability, including assumptions about inflation, salary changes, and postemployment benefit changes; mortality assumptions and source; dates of experience studies.

  • Discount rate

    • The discount rate applied in the measurement of total pension liability and the change in the discount rate since the prior measurement period, if any.

    • Assumptions made about projected cash flows into and out the pension plan such as contributions from employers, nonemployers, and employees.

    • Long-term expected rate of return on pension plan investments and a brief description of how it was determined.

    • The periods of projected benefit payments to which the discount rate of return applies.

    • Assumed asset allocation of the pension plan’s portfolio, the long-term expected real rate of return for each major asset class.

    • Measures of or effects on the employer’s proportionate share of the collective net pension liability calculated using a discount rate that is both 1% higher and 1% lower than the rate used.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 279

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

  • Other information disclosures

    • The employer’s proportionate share of the collective net pension liability and, if an employer has a special funding situation, 1) the portion of the nonemployer contribution entities’ total proportionate share of the collective net pension liability that is associated with the employer and 2) the total of the employer’s proportionate share of the collective net pension liability and the portion of the nonemployer contributing entities’ total proportionate share associated with the employer.

    • The employer’s proportion (percentage) of the collective net pension liability.

    • The measurement date of the collective net pension liability.

    • A brief description of changes of assumptions or other inputs that affected measurement of the total pension liability since the prior measurement date.

    • A brief description of changes of benefit terms since the prior measurement date.

    • Subsequent significant changes from the measurement date to the employer’s fiscal year-end impacting the employer’s net pension liability.

    • The amount of pension expense recognized by the employer during the reporting period. (This amount will probably differ from the employer’s reporting period contributions).


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2710

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Other information disclosures

  • The employer’s balances of deferred outflows and inflows of resources classified as follows:

    • Differences between expected and actual experience in the measurement of total pension liability.

    • Changes of assumptions.

    • Net difference between projected and actual earnings on pension plan investments.

    • Changes in the employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions.

    • The employer’s contributions to the plan subsequent to the measurement date of the collective net pension liability.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2711

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Other information disclosures

  • A schedule presenting the following:

    • For each of the subsequent five years and in aggregate thereafter, the net amount of the employer’s balances of deferred outflows/inflows of resources that will be recognized in the employer’s pension expense.

  • The amount of the employer’s balance of deferred outflows of resources that will be included as a reduction of the collective net pension liability.

  • The amount of revenue recognized during the period for the support provided by nonemployer contribution entities.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2712

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Required supplementary information – all cost-sharing employers

  • The required supplementary information should be presented separately for each cost-sharing pension plan though which pensions are provided (i.e. KTRS & CRS).

  • A 10-year schedule (as of the measurement date of the collective net pension liability) presenting the following for each year:

    • If the employer does not have a special funding situation:

      • The employer’s proportion (%) of the collective net pension liability.

      • The employer’s proportionate share ($) of the collective net pension liability.

      • The employer’s covered-employee payroll.

      • The employer’s proportionate share ($) of the collective net pension liability as a percentage of the employer’s covered-employee payroll.

      • The pension plan’s fiduciary net position as a percentage of the total pension liability.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2713

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Required supplementary information – all cost-sharing employers

  • If the employer has a special funding situation:

    • The employer’s proportion (%) of the collective net pension liability.

    • The employer’s proportionate share ($) of the collective net pension liability.

    • The portion of the nonemployer contributing entities’ total proportionate share ($) of the collective net pension liability that is associated with the employer.

    • The total of two previously mentioned proportionate shares.

    • The employer’s covered-employee payroll.

    • The employer’s proportionate share ($) of the collective net pension liability as a percentage of the employer’s covered-employee payroll.

    • The pension plan’s fiduciary net position as a percentage of the total pension liability.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2714

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Required supplementary information – all cost-sharing employers

  • If the contribution requirements of the employer are statutorily or contractually established, a 10-year schedule (as of the employer’s fiscal year-end) presenting the following for each year:

    • The statutorily or contractually required employer contribution.

    • The amount of contributions recognized by the pension plan in relation to the statutorily or contractually required employer contribution.

    • The difference between the statutorily or contractual required employer contribution and the amount of contributions recognized by the pension plan.

    • The employer’s covered-employee payroll.

    • The amount of contributions recognized by the pension plan as a percentage of the employer’s covered-employee payroll.

      Notes to required schedules

  • Information about factors that significantly affect trends in the amounts reported in the schedules should be presented as notes to the schedules.

  • Examples of notes and schedules are provided in Appendix C.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2715

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Defined Contribution Pensions

  • In financial statements prepared using the economic resources measurement focus and accrual basis of accounting, the following should be recognized:

    • Pension expense equal to the amount of employer contributions or credits to employees’ accounts that are defined by the benefit terms.

    • A change in the pension liability equal to the difference between amounts recognized as pension expense and amounts paid by the employer to the plan.

  • In financial statements prepared using the current financial resources measurement focus and modified accrual basis of accounting, pension expenditures should be recognized equal to the total of amounts paid by the employer to the pension plan and the change between the beginning and ending liability normally expected to be liquidated with current resources.


Gasb 68 accounting and financial reporting for pensions an amendment of gasb 2716

GASB #68 – Accounting and Financial Reporting for Pensions (an amendment of GASB #27)

Effective Date

  • Periods beginning after June 15, 2014. Earlier application is encouraged.

  • When accounting changes adopted, should be applied retroactively by restating financial statements, if practical, for all periods present. If not practical, the cumulative effect, if any, should be reported as a restatement of beginning net position or fund balance with note disclosure of the effect.

  • During transition period, information for the 10-year schedules should only present as many years practical measured under the provisions of this standard.

  • Provisions of the statement need not be applied to immaterial items.


Yellow book independence issues

Yellow Book Independence Issues

In December of 2011, the GOA issued the 2011 revision of Government Auditing Standards, commonly referred to as the “Yellow Book”.

Effective date for the revisions is for periods beginning after December 15, 2011.

The 2011 revisions can be obtained at the GOA website.

http://www.gao.gov/yellowbook


Yellow book independence issues1

Yellow Book Independence Issues

Significant Revisions to Independence

  • A conceptual framework for independence was added to provide a means for auditors to assess auditor independence to activities that are not expressly prohibited. The conceptual framework requires auditors to make independence determinations based on facts and circumstances that are often unique to specific audit environments. (3.07-3.26)

  • Requirements for auditors performing nonaudit services at entities they audit, including a requirement that auditors assess whether management possesses suitable skill, knowledge, or experience (SKE) to oversee the nonaudit service and to document that assessment, were established. (3.33-3.44)

  • Guidance on nonaudit services that always impair an auditor’s independence with respect to audited entities and on certain nonaudit services that may be permitted under appropriate conditions was substantially revised. (3.45-3.58)

  • A summary of requirements on documentation necessary to support adequate consideration of auditor independence was added. (3.59)


Yellow book independence issues2

Yellow Book Independence Issues

Skills, Knowledge, or Experience (SKE)

  • Before an auditor agrees to provide a nonaudit service to an audited entity, the auditor should determine whether providing such a service would create a threat to independence.

  • If the nonaudit service is allowable provided certain safeguard reduces the threat to an acceptable level, the auditor should consider management’s ability to effectively oversee the nonaudit service to be performed.

  • The auditor should determine that the audited entity has designated an individual(s) who possesses suitable skill, knowledge, or experience, and that the individual(s) understands the services to be performed sufficiently to oversee them.

  • Management’s assertion in the representation letter is not adequate documentation of the auditor’s assessment of SKE.


Yellow book independence issues3

Yellow Book Independence Issues

Skills, Knowledge, or Experience (SKE)

  • The individual is not required to possess the expertise to perform or reperform the services.

  • In assessing whether the individual designated to oversee the nonaudit service possesses suitable SKE, consider the individual’s:

    • Understanding the nature of the service.

    • Knowledge of the audited entity’s business and industry.

    • General business knowledge.

    • Education, licenses, accreditations, and membership in professional organizations.

    • Position at the audited entity.


Yellow book independence issues4

Yellow Book Independence Issues

Skills, Knowledge, or Experience (SKE)

  • The auditor should document consideration of management’s ability to effectively oversee nonaudit services to be performed.

  • Auditors should obtain assurance that management performs the following functions in connection with the nonaudit services:

    • Assumes all management responsibilities;

    • Oversees the services by designating an individual who possess suitable SKE.

    • Evaluates and adequacy and results of the services performed; and

    • Accepts responsibility for the results of the services.

  • If the entity's books and records are in poor condition, it is likely that no individual has suitable SKE to oversee nonaudit services.


Yellow book independence issues5

Yellow Book Independence Issues

Familiarity Threat

  • Familiarity threat is the threat that aspects of a relationship with management or personnel of an audited entity will lead an auditor to take a position that is not objective.

  • Examples of circumstances that may create familiarity threats for an auditor include:

    • A member of the audit team having a close or immediate family member who is a senior manager of the audited entity or an employee of the audited entity and in a position to exert significant influence over the subject matter of the audit.

    • An employee in a position to exert significant influence over the subject matter having recently served on the audit team.

    • An auditor accepting gifts or preferential treatment from an audited entity unless the value is trivial or inconsequential.

    • Senior audit personnel having a long association with the audited entity.


Kemper cpa group llp paducah

Kemper CPA Group LLP - Paducah

333 Broadway, Suite 1001

Paducah, Kentucky 42001

270.443.4400 phone

270.443.0963 fax

http://www.kempercpa.com/contact_us/kentucky/paducah/

  • Barry R. Hatcher, CPA, CFE - Partner In Charge

  • Mark Hequembourg,CPA – Partner

  • Kimberly D. Aaron, CPA, CVA – Partner

  • David Hampton, CPA – Partner

  • Michael T. Rundle, CPA – Of Counsel


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