AICPA Stretches Due Date for Receiving Comments on Proposed Changes in Accounting Standards

The AICPA has stretched the due date for receiving comments from its members on the alterations proposed by them with regard to professional accounting standards. The American Institute of CPAs Professional Ethics Executive Committee has now stretched the due date from 31^st August 2012 to 30^th November 2012 in their bid to offer the members of AICPA with extra time to share their comments and suggestions on the issue.

AICPA has proposed that Interpretation 101-3 - Nonattest Services should be revised. The board also mentioned that the revision would clarify that preparing financial statements is basically a nonattest service, which is contingent on the requirements of the Interpretation.

The American Institute of CPAs’ Accounting and Review Services Committee have also given their consent regarding extending the comment receiving deadline to 30^th November on the revisions that have been proposed to Statements on Standards for Accounting and Review Services (SSARS).

The alterations that have been proposed by AICPA will help in revising the goal of the compilation related engagement as well as offer guidance and requirements when a particular charted accountant is related with statements that were not entitled to a review, auditing engagement and compilation.

The Auditing Standards Board resolved to redraft the different audit related sections in Codification of Statements on Auditing Standards (included in the AICPA Professional Standards) in the month of October in 2011. The ASB released Statement on Auditing Standards (SAS) Numbers 122-124. The auditing related standards were clarified by ASB in order to make them easy to comprehend, read as well as apply. Following which, the proposed Statements on Standards for Accounting and Review has been redrafted according to the ARSC’s clarity drafting related conventions.

ARSC has supported the clarification proposed by the AICPA Professional Ethics Executive Committee (PEEC) since it is in tune with the manner in which Government Auditing Standards’ 2011 edition will treat the financial statements preparation. The clarification will also be similar to the views and suggestions of several accountants who are of the opinion that the financial statements preparation is the management’s responsibility as well as an important aspect of organization’s system for internal control.