AICPA proposes new forensic accounting standards
New York — The American Institute of CPAS proposed new professional standards in early December for forensic accounting engagements.
The proposed Statement on Standards for Forensic Services No. 1 aims to provide more tailored authoritative guidance to CPAS who perform forensic accounting services, and would classify forensic engagements as services provided either for “investigation” or for “litigation.”
The proposal, developed by the AICPA’S Forensic and Valuation Services Executive Committee, also includes prohibitions on providing legal opinions and performing certain forensic services for a contingent fee. It also provides more tailored authoritative guidance to AICPA members who perform forensic services. The proposal would take effect for any new engagements accepted on or after May 1, 2019, with early adoption permitted. Comments are due by Feb. 28, 2019.
CAQ provides tool for oversight of emerging tech
Washington, D.C. — The Center for Audit Quality released a new resource providing a framework and questions that audit committees may be asking as new technologies impact the financial reporting process.
The publication is based on the work of the Committee of Sponsoring Organizations of the Treadway Commission and has five key components: Understand the company’s emerging technology strategy and any specific technologies contemplated; understand management’s risk identification and assessment process; understand the control activities in place that respond to the identified risks; establish information and communication protocols; and monitor emerging technology activities.
Each category contains questions to be discussed.