2014 Knowledge-Based Audits Compilations, and Reviews …€¦ · The AICPA’s Auditing Standards Board’s (ASB) Risk Assessment Standards – The audit-related practice aids and

2014 Knowledge -Based Audits ™ , Compilat ions, and Reviews of Common Interest Realty Associations

Welcome to 2014 Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations ™ , the latest addition to the

ProSystem fx Knowledge Tools library!

Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations is designed to help the practitioner efficiently and effectively perform financial statement audits, compilations, and reviews of common interest realty associations (CIRAs) in accordance with auditing standards generally accepted in the United States of America (GAAS) and Statements on Standards for Accounting and Review Services (SSARs) issued by the Accounting and Review Services Committee (ARSC) of the American Institute of Certified Public Accountants (AICPA). The Knowledge-BasedTM Audit Methodology is a risk-based methodology that emphasizes using knowledge of the CIRA to make risk

assessments in connection with a financial statement audit. This allows the auditor to more appropriately focus audit efforts on those areas which in the auditor’s judgment are the most significant and pose the most risk to the financial statement audit. The operations of CIRAs are often unique and complex and require specialized accounting and auditing knowledge. This edition includes specific up-to-date guidance for auditing CIRAs. Conducting audits of CIRAs requires the exercise of the auditor’s professional judgment.

The AICPA’s Auditing Standards Board’s (ASB) Risk Assessment Standards – The audit-related practice aids and tools in the 2014 Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations are designed around the AICPA’s risk assessment and clarified standards to assist auditors of CIRAs by:

Facilitating compliance with GAAS;

Encouraging more effective audits through tailored audit programs and comprehensive practice aids;

Helping auditors to focus on and respond to identified audit risks; and

Enhancing audit documentation.

The Knowledge-BasedTM Compilation and Review (KBCR) Methodology emphasizes using knowledge of the CIRA to perform compilation and

review engagements by facilitating the flow of information so that the understanding obtained in each process affects the decisions made in the next. Although the accountant will likely perform most steps in this methodology sequentially, conducting an engagement is not necessarily a linear process. Knowledge gained from preliminary engagement activities helps the accountant design and customize engagement procedures; evidence gained from procedures performed is evaluated and the appropriate accountant’s report is issued. This edition includes specific up-to-date guidance for conducting compilation and review engagements of CIRAs in accordance with the SSARS. The compilation and review-related practice aids and tools in the 2014 Edition of Knowledge-Based Audits, Compilations and Reviews of Common Interest Realty Associations are designed around the AICPA’s SSARS standards to assist accountants by:

Facilitating compliance with the SSARS;

Encouraging more effective engagements through tailored engagement programs and comprehensive practice aids; and

Enhancing engagement documentation. The key components of the Knowledge-BasedTM Audit Methodology and the Knowledge-BasedTM Compilation and Review Methodology include:

An Overview that guides practitioners through the respective methodology;

Customizable Audit, Compilation, and Review Programs that take practitioners through related steps and procedures designed for use in audit, compilation, and review engagements;

Practice Aids to help practitioners complete steps or processes outlined in other related documents;

Reports that provide a variety of sample auditor’s and accountant’s reports;

Correspondence documents that provide sample engagement letters and management representation letters to be used in many common situations; and

Knowledge-Based Audit and Compilation and Review documents, integral to the overall engagement process, that contain steps and procedures required by GAAS and SSARSs.

Links to Accounting Research Manager (ARM) - If you subscribe to an ARM library that includes audit content, you can now link

directly to accounting and auditing source material from Resources within Knowledge Tools documents. Interpretive Guidance is integrated into each of the Knowledge Coach Tools through the Tips view of each new task pane.

Informational features include Practice Points, Examples, Optional Workpapers, and Resources to help auditors work more

effectively and efficiently. We have also added the ability to navigate from Resources within a document or the tip pane directly to CCH’s Accounting Research Manager and industry audit guides by simply clicking on the Reference.

This document is published for the purpose of communicating, to users of the toolset, updates and enhancements included in the current version. This document is not, and should not be used as an audit program to update the audit documentation of an engagement started in a previous version of this product.

KNOWLEDGE-BASEDTM AUDIT METHODOLOGY

IN THIS RELEASE

The 2014 Knowledge-BasedTM Audits, Compilations, and Reviews of Common Interest Realty Associations has been updated to help

auditors conduct audit engagements in accordance with the new clarified and redrafted auditing standards resulting from the ASB’s Clarity Project and related guidance, including the requirements of SAS-127, Omnibus Statement on Auditing Standards—2013. Many new tips and examples have been incorporated. The 2014 tools include links to specific guidance that provides instant access to detailed analysis related to the steps and processes discussed in the workpapers. Also included are revised financial statement disclosures checklists that provide a centralized resource of the current required and recommended GAAP disclosures and key presentation items, using the style referencing under the FASB Accounting Standards Codification™.

The 2014 edition of Knowledge-Based AuditsTM, Compilations, and Reviews of Common Interest Realty Associations includes the following updates: Knowledge-BasedTM Audit Documents (KBAs)

New tailoring questions have been added to the audit programs to further enable user customization for the specific needs of each engagement.

NEW KBA-200 CIRA Information and Background developed to capture relevant information and background details about the

CIRA in one workpaper.

NEW KBA-201N Client/Engagement Acceptance and Continuance Form: Noncomplex CIRAs developed to allow the auditor the

option of documenting his or her client/engagement acceptance decisions in a memorandum format, based on the circumstances of the engagement.

Tool

Type of

Change Description of Change Location

Based on

Standard Y/N

Standard

Reference

KBA-103 Modify Modified instructions to include guidance on potential

effects of deficiencies noted by the auditor.

Instructions Y AU-C 265

KBA-104 New Conclusion on whether disclosures met auditor

expectations moved from KBA-400 to the conclusion

section of this workpaper.

Procedure

Steps

N

KBA-201 Delete Removed Part 1, Section I - Background and Basic

Information, moved to KBA-200.

Table other

than

procedures

N

KBA-302 Delete Removed "No" from the Considered column. Table other

than

procedures

N

KBA-302 Delete Removed duplicative considerations. Table other

than

procedures

N

KBA-302 Modify Modified considerations to conform to AU-C 315. Table other

than

procedures

Y AU-C 315

and AU-C

240

KBA-302 New Added new consideration regarding management's belief

that their level of authority justifies certain level of

compensation and personal privileges.

Table other

than

procedures

Y AU-C 240

Tool

Type of


Based on

Standard Y/N

Standard

Reference

KBA-400 Delete Deleted column on "Did Management's Disclosures

Meet the Auditor's Expectations." This question was

moved to KBA-104. Modified instructions accordingly.

Table other

than

procedures

N

KBA-403 New New control objectives for member master file

maintenance.

Table other

than

procedures

N

KBA-403 New New control objectives for recording deferred revenues

for special assessments.

Table other

than

procedures

N

KBA-404 New New control objectives for cash disbursements. Table other

than

procedures

N

KBA-404 New New control objectives for combining and consolidating

general ledger data.

Table other

than

procedures

N

KBA-412 New Added 3 new tailoring questions to enable the user to

further customize the workpaper based on the needs of

the engagement.

Procedure

Steps

N

KBA-412 New Added step regarding the evaluation of the date of Type

1 reports.

Table other

than

procedures

Y AU-C 402

KBA-412 Modify Modified step regarding the time period covered by

Type 2 reports to conform to the standards.

Table other

than

procedures

Y AU-C 402

KBA-502 Modify Modified instructions to provide clearer guidance on the

auditor's approach.

Instructions N

KBA-502 Modify Modified options in Column 11 to make it clear that

only one answer is appropriate.

Instructions N

Audit Programs (AUDs)

New tailoring questions have been added to the audit programs to further enable user customization for the specific needs of each engagement.

New AUD-816 Audit Program: Variable Interest Entities

New separate audit programs for Commitments and Contingencies, Accounting Estimates, and Concentrations

Audit programs have been reorganized and reordered for better workflow. Additionally, duplicative steps have been removed throughout the audit program series.

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-101 New Added 9 new tailoring questions to enable the user to


the engagement.

Procedure

Steps

N

AUD-101 Modify Moved much of the detailed information from substeps

to practice points so that experienced users familiar with

this program have the option to save the time spent

reading the detail.

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-101 Modify Combined steps to eliminate duplication; new step reads

as follows:

4. Evaluate, conclude on, and document whether

auditor has the ability to adhere to the fundamental

principles and requirements of professional and

ethics standards including:

a. Integrity;

b. Objectivity;

c. Independence,

d. Professional competence and due care;

e. Compliance with firm policies:

f. Confidentiality; and

g. Professional behavior.

Procedure

Steps

N

AUD-101 Modify Combined steps to eliminate duplication; new step reads

as follows:

6. Perform client acceptance or continuance

procedures in accordance with firm policy.

Procedure

Steps

N

AUD-101 Modify Changed step to include directive to perform opening

balance procedures. New step reads as follows:

8. Perform the preliminary engagement activities

necessary to establish an appropriate audit strategy

and audit plan, including the audit procedures

necessary to obtain sufficient appropriate audit

evidence regarding the opening balances.

Procedure

Steps

N

AUD-101 Delete Moved project management step to practice point,

deleting the following step:

16. Consider preparing a detailed list of information

that is needed to perform the audit, for the client to

prepare.

Procedure

Steps

N

AUD-101 Delete Moved project management step to practice point,

deleting the following step:

17. Consider preparing a budget for completion of the

audit engagement.

Procedure

Steps

N

AUD-101 Modify Modified materiality step to include AU-C 600

considerations. Modified steps reads as follows:

19. Determine materiality for the financial statements as

a whole, the materiality level or levels for particular

classes of transactions, account balances, or

disclosures, if applicable, and performance

materiality for purposes of assessing the risks of

material misstatement and determining the nature,

timing, and extent of further audit procedures. This

determination should include component materiality

and component performance materiality when those

provisions of AU-C 600 apply.

Procedure

Steps

Y AU-C 600

AUD-101 Delete Deleted the following step:

For CIRAs with multiple locations or business units,

determine tolerable misstatement at an amount that

reduces to an appropriately low level the probability that

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

the total of uncorrected and undetected misstatements

would result in material misstatement of the financial

statements.

AUD-101 Modify Combined steps. New step reads as follows:

32. Identify and document the following:

a. Potential litigation and claims;

b. Commitments and contingencies;

c. Concentrations of risk;

d. Related-party transactions;

e. Significant management estimates and judgments

f. New or significant accounting issues; and.

g. Other areas requiring special audit consideration.

Procedure

Steps

N


Identify financial and nonfinancial information that may

be useful for performing substantive analytical

procedures.

Procedure

Steps

N


For clients with multiple locations or business u nits,

identify significant accounts, classes of transactions, and

disclosures, and their relevant assertions based on the

financial statements, and assess the risk of material

misstatement to the financial statements to determine the

extent to which audit procedures should be performed at

selected locations or business units to obtain sufficient

appropriate audit evidence about whether the financial

statements are free of material misstatement.

Procedure

Steps

N

AUD-101 Delete Added documentation to understanding step above and

deleted this duplicate step:

Document the understanding obtained of internal

controls relevant to the audit and of each of the internal

control components, the sources of information from

which the understanding was obtained, and the risk

assessment procedures performed.

Procedure

Steps

N

AUD-101 Delete Added documentation to step above and deleted this

duplicate step:

Document the controls related to the identified risks

about which the auditor has obtained an understanding.

Procedure

Steps

N

AUD-101 Modify Combined steps on response. Modified step reads as

follows:

50. Design, document, and implement the auditor’s

overall responses to the assessed risks of material

misstatement at the financial statement level.

Procedure

Steps

N

AUD-101 Delete Deleted step:

51. Design, document, and implement overall responses

to address the assessed risks of material

misstatement at the financial statement level.

Procedure

Steps

N

AUD-101 Delete Deleted step:

52. Determine whether it is necessary to make

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

pervasive changes to the nature, timing, and extent

of audit procedures to adequately address the

assessed risks of material misstatement; such as:

Increasing substantive testing of the valuation

of numerous significant accounts at year-end

because of significantly deteriorating market

conditions; and

Obtaining more persuasive audit evidence from

substantive procedures due to the identification

of pervasive weaknesses in the CIRA’s control

environment.

AUD-101 Modify Combined steps. New step reads as follows:

57. Determine whether to test the operating

effectiveness of internal controls over financial

reporting. If testing the operating effectiveness of

internal controls for significant audit areas,

document the planned approach to testing, results of

testing, and conclusions.

Procedure

Steps

N

AUD-101 Delete Deleted the following duplicate step from the perform

procedures section as it appears in the concluding

section:

Perform audit procedures to evaluate whether the overall

presentation of the financial statements, including the

related disclosures, is in accordance with the applicable

financial reporting framework.

Procedure

Steps

N

AUD-101 Modify Modified step on materiality levels to include

performance materiality

Procedure

Steps

Y AU-C 320

AUD-101 Delete Deleted step to evaluate whether the effect of

uncorrected misstatements are material, individually or

in combination with other misstatements, including the

evaluation of:

a. The quantitative and qualitative effects of individual

misstatements.

b. The quantitative and qualitative effects of the

aggregated misstatements.

c. The effect in the current period of prior-period

misstatements.

Procedure

Steps

N

AUD-601 Modify Updated for SAS-128, Using the Work of Internal

Auditors

Procedure

Steps

Table Other

than

procedures

Yes SAS-128

AUD-602 New 8. When determining whether to use the work of a

component auditor and whether to make reference

to the component auditor, we evaluated the

following:

Whether there are differences in the financial

reporting framework applied in preparing the

component and group financial statements.

Whether the audit of the component financial

Procedure

Steps

Y AU-C 600

Tool

Type of


Based on

Standard Y/N

Standard

Reference

statements will be completed in time to meet

the group reporting schedule.

Whether there are differences in the auditing

and other standards applied by the component

auditor and those applied in the audit of group

financial statements.

AUD-602 New 11. We have performed the following procedures to test

management’s consolidation process and evaluate

the appropriateness, completeness, and accuracy of

the consolidation adjustments and reclassifications.

We have also evaluated whether any fraud risk

factors or indicators of possible management bias

exist [insert description of findings or conclusions]:

Procedure

Steps

Y AU-C 600

AUD-603 New Added practice point on referring to the auditor’s

specialist in the auditor’s opinion.

Practice Point Y AU-C 620

ALL AUD-

800s

Modify Combined disclosures substep in all audit programs.

Modified substep to read as follows:

c. Financial information is appropriately presented and

described and disclosures are clearly expressed at

appropriate amounts.

Procedure

Steps

N

AUD-801 New We determined that all accounts opened or closed during

the period under audit were approved by appropriate

personnel.

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-801 New Added substep to petty cash procedure:

e. We evaluated the petty cash turnover rate (times

replenished) for propriety and reasonableness.

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-802 New 4. We reviewed the CIRA’s reconciliations of

statements or data feeds from custodians to the

accounting records and determined that:

a. Reconciling items were resolved properly.

b. Journal entries related to the reconciliations were

appropriate and made by authorized persons.

Procedure

Steps

N

AUD-802 New 5. We reviewed any master netting arrangements and

determined that all related financial instruments

were recorded.

Procedure

Steps

N

AUD-802 New 8. In the case of each nonresponse to confirmations

sent, we performed alternative procedures, such as:

Examining source documents, such as invoices

or broker’s statements.

Inspecting executed agreements.

Examining cash receipts, disbursements, and

trade confirmations subsequent to year-end.

Procedure

Steps

N^

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-802 New Added the following procedures to step if a service

organization provided services that are part of the

CIRA's information system, we

Evaluated whether the Type 1 report is as of a

date or, in the case of a Type 2 report, is for a

period that is appropriate for our purposes.

Evaluated the sufficiency and appropriateness

of the evidence provided by the report for the

understanding of the user entity’s internal

control relevant to the audit.

Determined whether complementary user entity

controls identified by the service organization

are relevant in addressing the risks of material

misstatement relating to the relevant assertions

in the user entity’s financial statements and, if

so, obtained an understanding of whether the

user entity has designed and implemented such

controls.

Procedure

Steps

N^

AUD-802 New 22. Added steps for procedures to be performed for

transfers of securities.

Procedure

Steps

N^

AUD-802 New 23. Added steps to be performed for financial assets that

have been transferred or sold.

Procedure

Steps

N^

AUD-802 New 24. Added steps to be performed if the CIRA has

continuing involvement in financial assets that have

been transferred or sold.

Procedure

Steps

N^

AUD-802 New 25. Added procedures for investments in closely held

corporations and partnerships and investments

carried on the equity method

Procedure

Steps

N^

AUD-802 New 40. Added procedures for interests in joint ventures Procedure

Steps

N^

AUD-802 New 53. Added procedures for joint ventures using the

proportionate consolidation method

Procedure

Steps

N*

AUD-802 New 54. Added procedures for joint ventures using the equity

method.

Procedure

Steps

N*

AUD-802 New Added new step:

73. We evaluated management’s valuation policies and

valuation models, including the assumptions used,

consideration of estimation uncertainty, and

frequency of recalibration.

Procedure

Steps

N*

AUD-802 New Substep added to valuation procedures:

b. We determined that the method used to determine

the fair value of the securities and derivatives was

consistently applied across periods and evaluated

any change in such method for propriety and

management bias.

Procedure

Steps

N

AUD-802 New Added new procedure steps for testing values of asset-

backed securities

Procedure

Steps

N*

AUD-802 New Added substeps to impairment procedures: Procedure N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

c. When the CIRA has recognized an impairment loss,

we gathered evidence supporting the amount of the

impairment adjustment recorded and

(1) Determine that the write-down of the

investment to a new cost basis was accounted

for as a realized loss;

(2) Tested the calculation of the loss recorded;

(3) Determined that the new cost basis of

investments previously written down is not

changed for subsequent recoveries in fair value;

(4) Reviewed a summary of investments written

down for completeness and unusual items;

(5) When applicable, evaluated management’s

assessment of the credit rating of the

counterparty; and

(6) Determined whether the CIRA has

appropriately complied with the requirements

of the applicable financial reporting framework.

Steps



the engagement.

Procedure

Steps

N

AUD-803 New Added substep to test the adequacy of the allowance for

uncollectible accounts:

d. We performed and reviewed ratio analyses for such

relationships as (1) receivables turnover, (2) days

revenues in receivables, (3) allowance for

uncollectible accounts to revenues, (4) allowance

for uncollectible accounts to receivables, (5) write-

offs to revenues, and (6) revenues by source to

revenues.

Procedure

Steps

N

AUD-803 New Moved step from AUD-812:

7. If significant, we considered whether penalty

assessments are being appropriately computed and

assessed.

Procedure

Steps

N

AUD-803 New 8. For significant special assessments, we performed

the following procedures:

a. We examined related supporting documentation

(e.g. bylaws, minutes from board of directors

meetings) authorizing the special assessments.

b. We determined that recognition of the revenue

from special assessments is recorded in the

proper period and that revenue from special

assessments designated for specific

expenditures has been deferred when

appropriate.

c. We performed a predictive test of aggregate

special assessments by multiplying the number

of unit owners by the amounts of approved

special assessments and investigated any

significant variations.

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-803 New 23. If improper revenue recognition was not identified

as a risk of a material misstatement due to fraud, we

documented the reasons regarding how that

presumption was overcome.

Procedure

Steps

Y AU-C 240

AUD-803 New Added new step

18. For other material receivables, such as from

tenants, the developer/sponsor, or from ancillary

operations we considered the collectability of the

receivable and performed the following procedures:

a. We examined contracts/leases and reviewed

terms and conditions.

b. We determined whether positive confirmation

requests are necessary and, if so, performed

procedures as outlined in steps 3, 4, above

c. We examined receipts subsequent to the

balance sheet date.

Procedure

Steps

N

AUD-803 New New step:

19. We determined whether any receivables have been

pledged, restricted, assigned, or discounted. RO

Procedure

Steps

N



the engagement.

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-805 Modify Modified substep on impairment analysis. Modified

steps read as follows:

(2) We reviewed management’s analysis of the

recoverability of the carrying values for reasonableness.

Procedure

Steps

N

AUD-806 New Added new tailoring questions to enable the user to


the engagement.

Procedure

Steps

N

AUD-806 Modify Moved considerations for PPE summary into main step,

eliminating 12 sign offs

Procedure

Steps

N

AUD-806 Delete Deleted duplicate step:

d. We scanned the detailed asset listing to determine

whether the useful lives are reasonable and depreciation

methods are in accordance with the applicable financial

reporting framework.

Procedure

Steps

N


b. We reviewed the useful lives of the long-lived fixed

assets to determine their reasonableness in the current

operating environment.

Procedure

Steps

N


(8) Evidence is available of obsolescence or physical

damage of an asset.

Procedure

Steps

N

AUD-806 New Added to new substeps for consideration when a reserve Procedure N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

study has been prepared to estimate the remaining useful

lives of common property components and the costs of

future major repairs and replacements:

d. Whether or not the preparer has their reserve

specialist designation as a way of confirming that

the study was completed in conformance with the

National Reserve Study Standards.

e. When the study was performed (i.e., is it recent).

Steps

AUD-806 New 13. We evaluated whether the methods and bases for

estimating the amounts disclosed are reasonable and

documented.

Procedure

Steps

N

AUD-807 New Added new tailoring question to enable the user to


the engagement.

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-808 Modify Reorganized the order of the audit procedures. Procedure

Steps

N

AUD-808 Delete Deleted a duplicative step on search for unrecorded

liabilities, as this step is performed in AUD-807.

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-809 New Added new step on whether the CIRA maintained

appropriate documentation for the calculation and

contents of tax accruals.

Procedure

Steps

Y AU-C 500



the engagement.

Procedure

Steps

N

AUD-810 Modify Modifying the title of an analytical step to match AID-

827.

Procedure

Steps

N


Steps

N

AUD-810 New New section on Debt Maturing within the Next Year

3. We inquired of the management as to whether there

are any negotiations with the lender to extend the

debt.

Procedure

Steps

N

AUD-810 New 4. We obtained or reviewed written documentation

that debt maturing in the current or succeeding

period had/has been extended, renewed, or replaced

with debt maturing more than 12 months after the

balance sheet date.

Procedure

Steps

N

AUD-810 New 5. We reviewed the debt payment schedules and

considered whether the CIRA has the ability to pay

current debt installments or to refinance the debt, if

necessary.

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-810 New 8. If covenant violations were identified and the CIRA

uses a classified balance sheet, we evaluated the

covenant violations as to whether the related debt is

classified as a current liability when required or if

the CIRA obtained a waiver of the covenant.

Procedure

Steps

N

AUD-810 New New substeps for additional procedures to be

performed when planned audit procedures are

insufficient:

g. Considering using the work of a specialist in

determining the fair value of derivatives, and

scrutinizing the specialist’s qualifications, integrity,

and results.

h. Verifying the fair value of derivatives using

multiple brokers or third parties.

i. Evaluating the underlying assumptions used in

valuing the derivatives and scrutinizing valuations

that look out of line with expectations.

Procedure

Steps

N

AUD-810 Modify Modified audit step regarding restrictive covenants to

include the consideration of "cross default" provisions.

Procedure

Steps

N

AUD-810 Modify Elevated a step (9) from substep level (7f). Procedure

Steps

N

AUD-811 New a. If applicable, we traced authorization for patronage

dividends declared or paid to the minutes of meetings

of the board of directors and other appropriate

committees and examined the supporting

documentation for patronage dividends paid.

Practice Point: .A cooperative can avoid being taxed on excess income by distributing cash in that amount as a patronage dividend to shareholders. Under the provisions of Internal Revenue Code (IRC) sections 1381–1388, cooperatives can deduct patronage dividends declared and paid within 8 and a half months after the end of the fiscal year. Such dividends are required to be paid 20 percent in cash and 80 percent constructively, with a qualified written notice of allocation, and are not included in gross income by tenant-shareholders, unless the property is used in a trade or business.

b. We prepared (or obtained from the client) an

analysis of treasury shares and performed the

following:

(1) We determined whether treasury share

transactions were authorized by reference to

board of directors and other appropriate

committee meeting minutes.

(2) We examined share certificates.

(3) We reconciled the activity shown on the analysis

to the general ledger.

c. If applicable, we identified and confirmed share

subscriptions receivable and determined whether the

amount is shown as a reduction of shareholders’

equity on the balance sheet.

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-812 Modify Changed title to Other Income, Operating Expenses, and

Major Repairs and Replacements Expenditures

Procedure

Steps

N

AUD-812 New 5. We reviewed the CIRA’s governing documents and

relevant tax statutes to determine whether the CIRA

is required to have a funding policy for future major

repairs and replacements.

Procedure

Steps

N

AUD-812 Delete Moved Step on considering whether penalty

assessments are being appropriate computed and

accounted for to AUD-803

Procedure

Steps

N

AUD-812 New b. We examined related supporting documentation for

the ancillary operations (e.g., contracts, agreements,

and authorizations from meetings of board of

directors meetings).

Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-813 Modify Moved consideration for selecting journal entries to test

into main step eliminating 5 sign offs.

Procedure

Steps

N

AUD-813 New f. Whether items selected for testing should include

journal entries made throughout the audit period.

Procedure

Steps

N

AUD-813 Modify Moved consideration for selecting journal entries at

components to test into main step eliminating 5 sign

offs.

Procedure

Steps

N

AUD-813 Modify Modified step for JE to test at period end. Modified step

reads as follows:

Items selected for testing included journal entries and

other adjustments made in the course of preparing the

financial statements and those made at the end of a

reporting period.

Procedure

Steps

N

AUD-813 Delete Deleted the following step as it duplicates step in

another program:

We inquired of individuals involved in the financial

reporting process about inappropriate or unusual activity

relating to the processing of journal entries and other

adjustments, including:

a. Accounting and data entry personnel about whether

they were requested to make unusual entries during

the audit period.

b. Certain programmers and IT staff about the existence

of any unusual and/or unsupported entries and

whether they were initiated directly by top

management outside the normal accounting process.

Procedure

Steps

N

AUD-813 Delete Deleted the following step as it duplicates step in

another program:

We examined material journal entries and other

adjustments made in the course of preparing the

financial statements and performed the following

procedures:

a. We agreed any material journal entries or other

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

adjustments to the underlying support for such

entries.

AUD-813 Modify Combined steps on financial statement review to read as

follows:

9. We performed an overall review of the financial

statements, including performing analytical

procedures to evaluate our conclusions regarding

significant accounts and disclosures and to assist in

forming an opinion on whether the financial

statements as a whole are free of material

misstatement.

Procedure

Steps

N

AUD-813 New a. The financial information and related disclosures are

presented fairly, in all material respects, in

conformity with the applicable financial reporting

framework.

Procedure

Steps

N

AUD-813 New 19. We obtained from the client the consolidation

worksheet used to create the consolidated financial

statements, and performed the following

procedures:

a. We reviewed the consolidation schedule to

ensure that all majority-owned subsidiaries

were included on the schedule.

b. We reviewed the schedule to ensure that all

intercompany balances and transactions were

eliminated.

c. We traced material subsidiary ledgers to audit

documentation and testing.

d. We compared the elimination and

consolidation entries in the current-year

schedule to those in the prior year(s) to ensure

completeness and comparability of information

presented. We inquired of any significant

differences from our expectations.

Procedure

Steps

N

AUD-813 New 20. We reviewed information published by the CIRA,

including, when applicable: management’s

discussion and analysis, press releases, and annual

reports for consistency with the information

presented in the financial statements. We inquired

about any inconsistencies noted and have modified

our audit report as deemed necessary (RPT-0901

Unmodified Opinion: Single-Year Financial

Statements through RPT-1108 Modified Report on a

Review of Interim Financial Information:

Modification due to Inadequate Disclosure

Procedure

Steps

N

AUD-813 New 26. We determined that all required supplementary

information required by the applicable financial

reporting framework accompanied the basic

financial statements and that the contents of such

required supplementary information met the

requirements of the applicable financial reporting

framework.

Procedure

Steps

N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-814 Modify This audit program has been modified to only apply to

Related-Party Transactions. The other sections were

developed into their own audit programs for better

usability and tailoring.

Procedure

Steps

N

AUD-814 Modify Step 1 modified to better reflect the required

reassessment procedures required by AU-C 550, to

include new and modified substeps.

Procedure

Steps

Y AU-C 550




Procedure

Steps

Y AU-C 550




Procedure

Steps

Y AU-C 550

AUD-814 Modify Substeps of fraud risk steps removed and replaced by

modifications at step 2.

Procedure

Steps

Y AU-C 550

AUD-814 Delete Removed duplicative step on transactions not previously

identified and on fraud risk.

Procedure

Steps

N


Steps

N

AUD-814 New 9. We evaluated whether off-balance-sheet

arrangements and transactions entered into with

variable interest entities (VIEs) represent related-

party transactions.

Procedure

Steps

N

AUD-814 New Added new step on forming an opinion and the related

evaluations.

Procedure

Steps

Y AU-C 550

AUD-815 New Added 1 new tailoring question to enable the user to


the engagement.

Procedure

Steps

N

AUD-815 Delete Removed duplicative steps. Procedure

Steps

N

AUD-815 New Added step on the evaluation of third-party pricing

services.

Procedure

Steps

Y AU-C 540

AUD-816 New New audit program for Variable Interest Entities Procedure

Steps

N

AUD-817 New New audit program on Commitments and

Contingencies.



the engagement.

Procedure

Steps

N

AUD-817 New Added new step on obtaining an understanding of how

the CIRA is complying with the applicable legal and

regulatory framework.

Procedure

Steps

Y AU-C 250

AUD-817 New Added new step on obtaining sufficient appropriate

audit evidence regarding material amounts that are

determined by the provisions of laws and regulations

that have a direct effect on the financial statements.

Procedure

Steps

Y AU-C 250

Tool

Type of


Based on

Standard Y/N

Standard

Reference

AUD-817 Delete Removed duplicative step on fraud, as the work is done

in AUD-903.

Procedure

Steps

N

AUD-817 New Added new step on the evaluation of the effect of legal

counseling restricting the use of their report.

Procedure

Steps

Y AU-C 250

AUD-817 New Added new step on the auditor's consideration that

obtaining a legal letter is not required, when the auditor

has not identified actual or potential litigation, claims, or

assessments.

Procedure

Steps

Y AU-C 250


Steps

N

AUD-818 New New audit program on Accounting Estimates.



the engagement.

Procedure

Steps

N


Steps

N


Steps

N

AUD-819 New New audit program on Concentrations.

AUD-820 Modify Modified practice point language for uniformity. Procedure

Steps

N



the engagement.

Procedure

Steps

N

AUD-901 New Added step on the auditor's responsibilities when he or

she has identified subsequent events that require

adjustment or disclosure.

Procedure

Steps

Y AU-C 560

AUD-902 New Added step on the auditor's consideration on conditions

or events identified during the audit and whether those

conditions or events were indicative of substantial doubt

regarding the CIRA's ability to continue as a going

concern.

Procedure

Steps

Y AU-C 570


Steps

N


Steps

N

AUD-902 New Added step regarding comparative financial statements

in which there was substantial doubt regarding the

CIRA's ability to continue as a going concern in the

prior period, yet that doubt has been alleviated in the

current period.

Procedure

Steps

Y AU-C 570

AUD-902 New Added step regarding the auditor's responsibilities when

management has asked the auditor to reissue an auditor's

report that eliminates the going-concern emphasis-of-

matter paragraph.

Procedure

Steps

Y AU-C 570

AUD-902 Delete Deleted the yes/no conclusion as it was duplicative of Procedure N

Tool

Type of


Based on

Standard Y/N

Standard

Reference

the audit program. Steps



the engagement.

Procedure

Steps

N

AUD-903 Modify Modified the instructions to include Sections and

additional guidance.

Procedure

Steps

N

AUD-903 Delete Deleted the duplicative substeps regarding

brainstorming meeting and added reference to KBA-303

where the work is completed, eliminating 9 sign offs.

Procedure

Steps

N


Steps

N

AUD-903 Delete Deleted the duplicative substeps regarding identified

risks of material misstatement and added reference to

KBA-501 and KBA-502 where the work is completed,

eliminating 4 sign offs.

Procedure

Steps

N

AUD-903 Delete Deleted the duplicative substeps regarding revenue

transactions and added reference to AUD-803 where the

work is completed, eliminating 5 sign offs.

Procedure

Steps

N

AUD-903 Delete Deleted substeps related to unpredictability, retained

top-level step, eliminating 4 sign offs.

Procedure

Steps

N

AUD-903 Delete Deleted the duplicative substeps regarding accounting

estimates and added reference to AUD-818 where the

work is completed, eliminating 3 sign offs.

Procedure

Steps

N

AUD-903 Delete Deleted the duplicative substeps regarding obtaining

written representation and added reference to AUD-101

where this step is performed, eliminating 5 sign offs.

Procedure

Steps

N

AUD-903 New Added a Results section to capture findings as a result of

work performed on this audit program.

Procedure

Steps

N



the engagement.

Procedure

Steps

N


Steps

N



the engagement.

Procedure

Steps

N

AUD-905 Modify Modified the instructions to include Sections and

additional guidance.

Procedure

Steps

N

AUD-905 New Added a Results section to capture findings as a result of

work performed on this audit program.

Procedure

Steps

N

Auditor’s Reports (RPTs)

NEW RPT-900 a new tailoring questionnaire that assists the auditor in determining the proper auditor’s report to use based on

the conditions identified during the audit engagement.

Applicable reports have been modified to include a Report on Required Supplementary Information paragraph with a

footnote for alternative language when required supplementary information has not been subjected to specified procedures or

if all or part of the required supplementary information is omitted.

New Audit Reports:

RPT-0909 Unmodified Opinion: Emphasis-of-Matter Paragraph Related to a Change in Reporting Entity RPT-0915 Unmodified Opinion: Successor Auditor’s Unmodified Opinion When Predecessor Auditor’s

Report Included an Emphasis-of-Matter Paragraph and Is Not Presented RPT-0918 Unmodified Opinion: Opinion Based in Part on the Report of a Component Auditor RPT-0921 Unmodified Opinion: Summary Financial Statements (When Unmodified Opinion Is Expressed

on the Audited Financial Statements) RPT-0922 Unmodified Opinion: Summary Financial Statements (When Qualified Opinion Is Expressed

on the Audited Financial Statements) RPT-0924 Unmodified Opinion: Financial Statements Prepared on the CIRA’s Income Tax Basis

RPT-0925 Unmodified Opinion: Special-Purpose Financial Statements Prepared in Accordance with a

Contractual Basis of Accounting

RPT-0926 Unmodified Opinion: Single Financial Statement Prepared in Accordance with a Special-

Purpose Framework

RPT-0927 Unmodified Opinion: Schedule of Assets Sold and Liabilities Transferred to Comply with a

Contractual Agreement (Incomplete Presentation Otherwise in Accordance with U.S. GAAP

RPT-0928 Unmodified Opinion: Specific Element, Account, or Item of a Financial Statement Prepared in

Accordance with a Special-Purpose Framework

RPT-0939 Unmodified Opinion on Comparative Financial Statements with Unmodified Opinion on Part

of the Supplementary Information and Disclaimer of Opinion on the Part of Supplementary

Information Not Subjected to Audit Procedures

RPT-0946 Unmodified Opinion: Single Year Prepared in Accordance with U.S. GAAP When

Comparative Summarized Financial Information Derived from Audited Financial Statements

for the Prior Year Is Presented

RPT-0947 Unmodified Opinion: Single Year Prepared in Accordance with U.S. GAAP When

Comparative Summarized Financial Information Derived from Unaudited Financial Statements

for the Prior Year Is Presented

RPT-0963 Separate Report on Compliance with Aspects of Contractual Agreements When Instances of

Noncompliance Are Identified


Noncompliance Are Identified and a Waiver Has Been Obtained


Noncompliance Are Identified and the Auditor Has Disclaimed an Opinion on the Financial

Statements

RPT-0986 Qualified Opinion: Due to the Auditor’s Inability to Obtain Sufficient Appropriate Audit

Evidence (The Auditor Has Concluded That a Disclaimer of Opinion Is Not Appropriate)

RPT-1003 Adverse Opinion: Summary Financial Statements—Unmodified Opinion on Full Financial

Statements

RPT-1016 Disclaimer of Opinion: Scope Limitation-- Auditor Did Not Confirm Assessments Receivable

RPT-1018 Disclaimer of Opinion: Summary Financial Statements—Adverse Opinion on Full Financial

Statements

RPT-1019 Disclaimer of Opinion Due to the Auditor’s Inability to Obtain Sufficient Appropriate Audit

Evidence about Multiple Elements of the Financial Statements

Correspondence Documents (CORs)

2014 Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations illustrative example

correspondence documents have been updated throughout to include new practice points and examples, and to adopt the new

terminology used in the clarified standards.

COR-200 Series has been reorganized to better reflect the order in which these correspondences may be used during the audit

engagement, as follows:

2013 2012 Title

COR-203 COR-201 Entity Consent and Acknowledgment Letter

COR-206 COR-202 Successor Auditor Acknowledgment Letter

COR-207 COR-203 Representation Letter from Successor Auditor to Predecessor Auditor

COR-201 COR-204 Audit Engagement Letter

COR-202 NA Audit Engagement Letter When Also Performing Reviews of Interim Financial Information

COR-208 COR-205 Inquiry Letter from the Component Auditor to the Group Engagement Team

COR-209 COR-206 Group Engagement Team’s Response Letter to Inquiries from the Component Auditor

COR-210 COR-207 Group Engagement Team’s Request for Representations from Component Auditor Who

Audits the Financial Statements of a Component

COR-211 COR-208 Group Engagement Team's Request for Component Auditor’s Confirmations When the

Component Auditor Performs Certain Audit Procedures

COR-214 COR-209 Group Engagement Team’s Request for Documentation from Component Auditor

COR-217 COR-210 Communication to Client When the Auditor Is Not Required by Law, Regulation, or Audit

Contract to Provide Access to the Audit Documentation

COR-218 COR-211 Letter to Regulator Prior to Allowing a Regulator Access to the Audit Documentation

COR-219 COR-212 Auditor's Agreement with and Request for Representations from the Auditor's Specialist

Who Performs Certain Audit Procedures

COR-204 COR-213 Communication with Predecessor Auditor Prior to Client/Engagement Acceptance

COR-205 COR-214 Request from Client to Predecessor Auditor to Release Information to Successor Auditor

COR-212 COR-215 Component Auditor's Confirmation Response to Group Engagement Team

COR-216 COR-216 Communication with Those Charged with Governance during Planning

COR-215 COR-301 Letter to Component Auditors Regarding Related Parties

COR-213 COR-302 Group Engagement Team's Letter of Instruction to the Component Auditor Who Performs

Certain Audit Procedures or Audits the Financial Statements of a Component

NEW COR-202 provides a sample illustrative engagement letter to be used when the auditor is performing reviews of interim

financial information, in accordance with AU-C 900, Interim Financial Information, in addition to the audit engagement.

NEW COR-218 replaces COR-301.

NEW COR-219 replaces COR-302.

COR-301 no longer in use.

COR-302 no longer in use.

COR-803 added new column for Maturity Date to table.

COR-813 added new consideration of the nature and details of actual or technical defaults on debt.

COR-814 added new consideration of the nature and details of actual or technical defaults on debt.

COR-822 added new confirmation of sales terms.

COR-906 modified introductory paragraph and reformatted this letter to confirm to clarified format.

Practice Aids (AIDs) All AIDs have been updated with formulas that perform automatic calculations, wherever applicable.

AID-201 added practice point on Exposure Draft – Omnibus Proposal – AICPA Professional Ethics Division, Interpretations

and Definitions.

AID-301 columns added to “Fluctuation” tab to document the auditor’s expectations and the basis for the auditor’s

expectation.

AID-601 updated for SAS-128

New AID-602 Understanding and Preliminary Assessment of the Entity's Internal Audit Function New AID to help the auditor

obtain an understanding of the entity’s internal audit function, make a preliminary assessment of the internal audit function,

and document the procedures for understanding the internal audit function’s organizational status, determining the nature and

extent of the work of the internal audit function that can be used, the technical competence of the internal auditors, and the

systematic and disciplined approach used by the internal audit function. AID-903 developed to help determine whether the auditor’s report contains the elements required by professional standards

when the auditor is not using the provided illustrative report examples.

Resource Documents (RESs) RES-002 modified as appropriate to incorporate new workpapers and realignment of workpaper numbering schemes.

NEW RES-020 New resource document providing examples of conditions and events that may be indicative of risk of

material misstatements of the group financial statements.

NEW RES-021 New resource document providing examples of factors to be considered when documenting

client/engagement acceptance and continuance.

In addition, forms and practice aids throughout have been updated to include new examples and tips and, where applicable, to take into

account:

New literature, standards, and developments, reflected in the following current audit and accounting guidance: Statements on Auditing Standards (SASs):

SAS-128, Using the Work of Internal Auditors.

FASB Accounting Standards Codification as of March 10, 2014, and through Accounting Standards Update No. 2014-05—Service

Concession Arrangements (Topic 853). Statements on Auditing Standards (SASs): SAS-127, Omnibus Statement on Auditing Standards – 2013

FASB Accounting Standards Codification as of March 31, 2013, and through Accounting Standards Update No. 2012-07—

Entertainment—Films (Topic 926).

KNOWLEDGE-BASEDTM COMPILATION AND REVIEW (KBCR) METHODOLOGY

IN THIS RELEASE

The 2014 Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations tools have been updated to take into account the latest literature, standards, and guidance applicable to compilation and review engagements. The 2014 tools include links to detailed analysis related to the steps and processes discussed in the workpapers. Also included is a revised financial statement disclosures checklist that provides a centralized resource of the required and recommended GAAP disclosures and key presentation items currently in effect, using the style referencing under the FASB Accounting Standards Codification.™

The 2014 Edition of Knowledge-Based Audits, Compilations, and Reviews of Common Interest Realty Associations is current through Statement on Standards for Accounting and Review Services No. 20 (SSARS-20), Revised Applicability of Statements on Standards for Accounting and Review Services, AR Section 9080, Compilation of Financial Statements-Accounting and Review Services Interpretations of Section 80, and AR Section 9090, Review of Financial Statements-Accounting and Review Services Interpretations of Section 90. IN THIS RELEASE

Compilation Programs (CMPs):

To enhance usability and increase efficiency, CMP-101 Overall Compilation Program has been streamlined.

Compilation programs have been updated throughout to include additional tailoring. Specific Compilation Program Enhancements:

Tool

Type of Change

Description of Change

Location

Based on Standard

Y/N

Standard Reference

CMP-101 Delete/ Modify

The following steps were changed from engagement procedures requiring sign-off to a practice point titled "project management considerations"

1. Contact the client to determine when information and client personnel will be available so that staff can begin compilation procedures.

2. Review prior year’s financial statements, workpapers, budget, and budget/actual comparisons to evaluate the time necessary to complete the engagement. and:

a. Identify any specific known matters, affecting the current or prior period, that may require additional or less time compared to the previous period.

b. Consider changes occurring at the client, such as changes in volume, processes, product mix, or personnel, which may require additional or less time compared to the previous period.

c. Consider whether staff with specific expertise is needed for, or will enhance the effectiveness or

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

efficiency of, the engagement.

3. Schedule meeting with engagement staff to prepare for the engagement.

4. Instruct staff adequately about the engagement and:

a. Remind or inform staff of the nature of the client’s business and the content of the client’s financial statements.

b. Discuss items on the financial statements that may require particular attention as a result of:

i. Their significance to users.

ii. Their proneness to error or misstatement.

iii. Their potential to be affected by client bias.

c. Inform staff of developments, such as changes at the client, which may affect the engagement.

d. Discuss engagement budget. and:

i. Emphasize importance of early communication when matters may affect the budget.

ii. Emphasize importance of “getting it right” by making certain not to ignore items that may seem incorrect, inappropriate, or otherwise attention worthy.

e. Provide information about other matters (describe below):

5. Instruct staff accountants to communicate significant problems to the in-charge accountant on a timely basis.

6. Make arrangements to review workpapers on a timely basis.

7. Instruct staff accountants to discuss their disagreements concerning professional matters with the in-charge accountant.

8. Inform staff accountants about procedures available to document their disagreements concerning professional matters.

9. Identify other matters relative to supervising the engagement (describe below

CMP-101 New New procedure added:

1. Perform procedures as necessary to obtain a preliminary understanding of the scope of the engagement.

Table N

CMP-101 Modify Professional standards steps modified to read as follows:

3. Evaluate, conclude on, and document whether accountant has the ability to adhere to the fundamental principles and requirements of professional and ethics standards including: a. Integrity; b. Objectivity; c. Independence,

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

d. Professional competence and due care; e. Compliance with firm policies: f. Confidentiality; and g. Professional behavior.

CMP-101 Modify The separate acceptance and continuance steps were combined to a new step that reads as follows:

6. Perform client acceptance procedures or continuance procedures in accordance with firm policy.

Table N

CMP-101 Modify Predecessor communication step modified to read as follows:

7. If this is the initial engagement for a new client, and a predecessor accountant exists, consider communicating with the predecessor accountant.

Table N

CMP-101 New Step added to address required supplementary information:

10. If the CIRA is presenting the required supplementary information about future major repairs and replacements, determine if we are engaged to compile the required supplementary information.

Table N

CMP-101 Delete 17. If any issues were identified that may have affected the decision to accept or continue the client relationship or the engagement, describe the issues and indicate how they were resolved (describe below):

Table N

CMP-101 New Substeps added to the steps applicable when the accountant is not using one of the illustrative example engagement letters:

h. Reference to any supplementary information and whether or not it is to be compiled as part of the engagement.

i. If the CIRA presents required supplementary information about future major repairs and replacements, reference to the required supplementary information and whether or not it is to be compiled as part of the engagement

k. Reference to the omission of a statement of cash flows or substantially all disclosures, if applicable.

l. Reference to any other known material departures from the applicable financial reporting framework, and that the effects of such departures on the financial statements may not be disclosed.

Table N

CMP-101 Delete Steps related to the scope of the engagement that are addressed in the acceptance/continuance program deleted from overall engagement program including:

28. When comparative financial statements are to be presented, determine if our firm will be responsible for reporting on the previous year’s financial statements.

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

32. If a portion of the financial statements is compiled by another accountant, determine whether we can serve as the principal accountant.

33. If we can serve as the principal accountant, consider whether to refer in our compilation report to the work performed by the other accountant.

CMP-101 New Substep added to the consideration of U.S. GAAP departures step:

c. The CIRA has decided not to present comprehensive income.

Table N

CMP-101 New Plan the nature, timing, and extent of the direction and supervision of engagement team members and the review of their work.

Table N

CMP-101 Modify The industry understanding step modified to read as follows:

28. Obtain or update an understanding of the CIRA, including the specialized accounting principles and practices.

Table N

CMP-101 Modify The entity understanding steps modified to read as follows:

28. Obtain or update an understanding of the CIRA and its operations, including:

a. The CIRA’s organizational structure, including its legal structure;

b. The CIRA’s history;

c. The CIRA’s operating characteristics, including for example;

(1) Services provided to unit owners;

(2) The nature of any ancillary operations;

(3) If a property management company is used, the extent of its responsibilities and the degree of interaction and supervision exercised by the board of directors;

(4) If the developer/sponsor is providing operating subsidies, the nature of and compliance with the subsidy agreement ;

(5) The size of the CIRA (such as number of units, shares, or weeks);

(6) Location and types of common properties and the CIRA’s accounting policy for recognition and measurement of common property;

(7) Policies and methods for funding current operations;

(8) Policies and methods for funding major repairs and replacements; and

(9) The method used to estimate funding needed for future major repairs and replacements (such as a formal study by a

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

professional engineer or a study conducted by the board of directors).

e. Industry, regulatory, and other external factors;

f. Concentrations of risk;

g. Related-party transactions;

h. Significant management estimates and judgments; and

i. New or significant accounting issue.

29. Obtain or update an adequate understanding of the CIRA’s accounting principles and practices used in measuring, recognizing, recording, and disclosing all significant accounts and disclosures in the financial statements , including:

a. Any changes in accounting practices or principles

b. Differences between the entity’s practices and industry norms.

CMP-101 New 30. If the CIRA has an interest in a variable interest entity, obtain an understanding of whether management has completed an assessment of whether the CIRA has a controlling financial interest in the VIE and, thus, is the VIE’s primary beneficiary. Practice Point: Management is required to perform this assessment in accordance with U.S. GAAP. The failure to perform such an assessment, or management’s instructions to the accountant to not perform the assessment, constitutes a departure from GAAP. In such circumstances, the accountant should consider whether modification of the standard report is adequate to disclose the departure.

Table Y TIS Section 9150

CMP-101 New 33. Develop or update an understanding of the nature of the client’s assets and liabilities.

Table N

CMP-101 Delete 46. Document the stated qualifications of new accounting personnel (include employee name, position with firm, and description of qualifications) and changes to the qualifications of returning accounting personnel, including: a. Educational background. b. Training programs. c. Work experience. d. Other qualifications.

Table N

CMP-101 Delete Deleted duplicate step: 53. Consider whether the firm is independent. If it is not independent, modify the engagement letter to indicate that fact and its impact on the compilation report.

Table N

CMP-101 Modify The following step has been moved to a substep in the engagement completion step:

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

64. Determine that all required forms and checklists have been completed.

CMP-101 Modify The communicate to management and communicate to those charged with governance steps have been combined to read as follows:

53. Communicate material misstatement and other findings and matters that came to our attention to management, and when applicable, those charged with governance that came to our attention have been communicated to management in a timely manner. Consider drafting and issuing a management letter.

Table N

CMP-201 New Investments added to understanding tables. Table N

CMP-202 Modify Instructions modified to better communicate that this optional workpaper is only applicable when a predecessor accountant exists and the successor accountant has decided to communicate with such predecessor.

Table N

Review Programs (REVs)

To enhance usability and increase efficiency, REV-101 Overall Review Program has been streamlined.

Review programs have been updated throughout to include additional tailoring. Specific Review Program Enhancements

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

REV-101 Delete/

Modify

The following steps were changed from engagement procedures requiring sign-off to a practice point titled "project management considerations":

1. Contact the client to determine when information and client personnel will be available so that staff can begin review procedures.

2. Review prior year’s financial statements, workpapers, budget, and budget/actual comparisons to evaluate the time necessary to complete the engagement. and

a. Identify any specific known matters, affecting the current or prior period, that may require additional or less time compared to the previous period.

b. Consider changes occurring at the client, such as changes in volume, processes, product mix, or personnel, which may require additional or less time compared to the previous period.

c. Consider whether staff with specific expertise is needed for, or will enhance the effectiveness or

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

efficiency of, the engagement.

3. Schedule meeting with engagement staff to prepare for the engagement.

4. Instruct staff adequately about the engagement and:

a. Remind or inform staff of the nature of the client’s business and the content of the client’s financial statements.

b. Discuss items on the financial statements that may require particular attention as a result of:

i. Their significance to users.

ii. Their proneness to error or misstatement.

iii. Their potential to be affected by client bias.

c. Inform staff of developments, such as changes at the client, which may affect the engagement.

d. Discuss engagement budget. and:

i. Emphasize importance of early communication when matters may affect the budget.

ii. Emphasize importance of “getting it right” by making certain not to ignore items that may seem incorrect, inappropriate, or otherwise attention worthy.

e. Provide information about other matters (describe below):

5. Instruct staff accountants to communicate significant problems to the in-charge accountant on a timely basis.

6. Make arrangements to review workpapers on a timely basis.

7. Instruct staff accountants to discuss their disagreements concerning professional matters with the in-charge accountant.

8. Inform staff accountants about procedures available to document their disagreements concerning professional matters.

9. Identify other matters relative to supervising the engagement (describe below):

REV-101 New New procedure added:

Perform procedures as necessary to obtain a preliminary understanding of the scope of the engagement.

Table N

REV-101 Modify Professional standards steps modified to read as follows:

3. Evaluate, conclude on, and document whether accountant has the ability to adhere to the fundamental principles and requirements of professional and ethics standards including: a. Integrity; b. Objectivity;

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

c. Independence, d. Professional competence and due care; e. Compliance with firm policies: f. Confidentiality; and g. Professional behavior.

REV-101 Modify Pre-review steps modified to read as follows:

5. If needed, perform pre-review procedures to gain a greater understanding of the entity.

Table N

REV-101 Modify The separate acceptance and continuance steps were combined to a new step that reads as follows:

6. Perform client acceptance procedures or continuance procedures in accordance with firm policy.

Table N

REV-101 Modify Predecessor communication step modified to read as follows:

7. If this is the initial engagement for a new client, and a predecessor accountant exists, consider communicating with the predecessor accountant.

Table N

REV-101 Delete 17. If any issues were identified that may have affected the decision to accept or continue the client relationship or the engagement, describe the issues and indicate how they were resolved (describe below):

Table N

REV-101 New Substeps added to the steps applicable when the accountant is not using one of the illustrative example engagement letters:

h. Reference to any supplementary information and whether or not it is to be reviewed as part of the engagement.

i. Reference to any other known material departures from the applicable financial reporting framework, and that the effects of such departures on the financial statements may not be disclosed.

Table N

REV-101 New 20. If the client is presenting the required supplementary information about future major repairs and replacements, which is not part of the basic financial statements, determine if we are engaged to compile or review the required information.

Table N

REV-101 Delete Steps related to the scope of the engagement that are addressed in the acceptance/continuance program deleted from overall engagement program including:

29. When comparative financial statements are to be presented, determine if our firm will be responsible for reporting on the previous year’s financial statements.

33. If a portion of the financial statements is compiled by another accountant, determine whether we can serve as the principal accountant.

34. If we can serve as the principal accountant, consider whether to refer in our review report to the work

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

performed by the other accountant.

REV-101 Delete 31. Consider the effect on review procedures if:

a. The client has decided to omit substantially all disclosures.

b. The client has decided not to present a statement of cash flows.

Table N

REV-101 New 25. Plan the nature, timing, and extent of the direction and supervision of engagement team members and the review of their work.

Table N

REV-101 Modify The CIRA understanding step modified to read as follows:

27. Obtain or update an understanding of the CIRA industry, including the specialized accounting principles and practices.

Table N

REV-101 Modify The CIRA understanding steps modified to read as follows:

28. Obtain or update an understanding of the CIRA and its operations, including:

a. The CIRA’s organizational structure, including its legal structure;

b. The CIRA’s history;

c. The CIRA’s operating characteristics including, as applicable;

(1) Services provided to unit owners;

(2) The nature of any ancillary operations;

(3) If a property management company is used, the extent of its responsibilities and the degree of interaction and supervision exercised by the board of directors;

(4) If the developer/sponsor provided operating subsidies during the review period, the nature of and compliance with the subsidy agreement;

(5) The size of the CIRA (such as number of units, shares, or weeks);

(6) Location and types of common properties and the CIRA’s accounting policy for recognition and measurement of common property;

(7) Policies and methods for funding current operations;

(8) Policies and methods for funding major repairs and replacements; and

(9) The method used to estimate funding needed for future major repairs and replacements (such as a formal study by a professional engineer or a study conducted by the board of directors).d. Industry, regulatory, and other

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

external factors;

e. Concentrations of risk;

f. Related-party transactions;

g. Significant management estimates and judgments; and

h. New or significant accounting issue

29. Obtain or update an adequate understanding of the CIRA’s accounting principles and practices used in measuring, recognizing, recording, and disclosing all significant accounts and disclosures in the financial statements , including :

a. Any changes in accounting practices or principles

b. Differences between the entity’s practices and industry norms.

REV-101 New 31. If the CIRA has an interest in a variable interest entity, obtain an understanding of whether management has completed an assessment of whether the CIRA has a controlling financial interest in the VIE and, thus, is the VIE’s primary beneficiary. Practice Point: Management is required to perform this assessment in accordance with U.S. GAAP. The failure to perform such an assessment, or management’s instructions to the accountant to not perform the assessment, constitutes a departure from U.S. GAAP. In such circumstances, the accountant should consider whether modification of the standard report is adequate to disclose the departure.

Table Y

REV-101 Modify The following step has been moved to a substep in the engagement completion step:

65. Determine that all required forms and checklists have been completed.

Table N

REV-101 New 39. Describe the form and content of the financial statements or financial information (describe below):

Procedure Steps

N

REV-101 Modify The communicate to management and communicate to those charged with governance steps have combined to read as follows:

66. Communicate material misstatements and other findings and matters that came to our attention to management, and when applicable, those charged with governance a in a timely manner. Consider drafting and issuing a management letter.

Table N

REV-201 New Investments added to understanding sections Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

REV-202 Modify Instructions modified to better communicate that this optional workpaper is only applicable when a predecessor accountant exists and the successor accountant has decided to communicate with such predecessor.

Table N

REV-801 New The following inquiries were added to the program:

5. Have voluntary changes in accounting principles, if any, been reflected in the financial statements through retrospective application of the new principle in comparative financial statements?

12. Is the CIRA a general partner in a limited partnership arrangement or a controlling partner in a general partnership?

13. If the CIRA is a general partner in a limited partnership arrangement or a controlling partner in a general partnership, has an evaluation been performed to determine whether the limited partnership or partnership should be consolidated into the financial statements of the CIRA?

14. If the CIRA has an interest in a variable interest entity, has management performed an assessment of whether the CIRA has a controlling financial interest in the VIE and, thus, is the VIE’s primary beneficiary?

Practice Point: Management is required to perform the assessment in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), the failure to perform such an assessment and management’s instructions to the accountant to not perform the assessment constitute a departure from U.S. GAAP.

Procedure Steps

N

REV-801 New The following inquiries were added to the program:

8. Are derivative instruments properly measured and disclosed in the financial statements?

9. Have the documentation or assessment requirements related to hedge accounting been met for derivative instruments utilized in hedge transactions?

10. Has appropriate consideration been given to the classification of investments between current and noncurrent?

11. Are any investments encumbered?

6. Does management have the positive ability and intent to hold the securities classified as held to maturity until they mature?

3. Are there any unit owners, developer/sponsor, operators of ancillary operations or sources of other revenue (e.g., major tenants) having bankruptcy or liquidity issues that would have a material effect on the financial statements?

6. Have there been any changes in contracts with unit

Procedure

Steps

N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

owners, developer/sponsor, operators of ancillary operations or sources of other revenue (e.g., major tenants) having that may affect the classification or valuation of receivables?

8. Have receivables from unit owners or the developer/sponsor been evaluated to determine if they should be reflected in the equity section (rather than the asset section) of the balance sheet?

10. Are recourse provisions for receivables pledged, discounted, or factored properly reflected in the financial statements?

13. Have there been significant credits issued subsequent to the balance sheet date?

14. Is the accounts receivable subsidiary ledger reconciled to the general ledger account balance on a regular basis?

10. Are all components of the cost of self-constructed property and equipment items properly recorded including capitalized interest when applicable?

8. Are any intangible assets mortgaged or otherwise encumbered?

4. Has a liability for employees’ compensated absences been properly accrued and disclosed in the financial statements?

7. Have there been any changes in contracts with suppliers that may affect the classification or valuation of payables?

6. Have all required tax payments been made on a timely basis?

9. Is the CIRA confident that local governments have not imposed property taxes on both the CIRA and unit owners for the same property?

3. Have all mandatorily redeemable ownership interests been evaluated and properly classified?

7. Do disclosures related to ownership interests include all applicable call provisions (prices and dates), conversion provisions (prices and rates), and unusual voting rights, significant terms of contracts to issue additional ownership interests, or any other unusual features associated with the ownership interests?

1. Are there any restrictions on retained earnings/fund balances or other equity accounts?

2. If this is the CIRA’s initial audit, have initial working capital contributions been recorded properly?

3. If the developer/sponsor transferred control to the CIRA during the review period:

a. Was control transferred in compliance with the declarations or other governing documents or statutory requirements?

b. Were assets received from the developer property

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

accounted for?

c. Did the developer fulfill its obligation to pay for expenses in accordance with the terms of the offering document or subsidy agreement?

5. Are there plans or intentions that may materially affect the carrying amounts or classification of assets and liabilities reflected in the financial statements?

6. Are barter or other nonmonetary transactions properly recorded and disclosed?

1. Have all subsidiaries been evaluated to determine whether they should be included in the consolidated financial statements?

2. Have all divisions and branches been included in the client’s financial statements?

3. Have all intercompany and intercompany accounts and transactions been eliminated?

1. Have entities (other than the CIRA) in which the owners have significant investments (e.g., variable interest entities) been evaluated to determine whether they should be included in the consolidated financial statements?

2. For interoperate investments not consolidated, has there been an evaluation as to whether the equity method or the cost method should be used to account for the investment?

3. Has there been any change in the accounting for an interoperate investment?

Practice Aids: (AIDs):

NEW AID-835 Variable Interest Entities is a new optional workpaper designed to help the accountant evaluate whether an entity has properly consolidated a variable interest entity (VIE) in its financial statements.

NEW AID-836 Uncorrected Misstatements Analysis is a new optional workpaper designed to help the accountant evaluate uncorrected misstatements identified during the engagement.

NEW AID-906 Compilation Report Preparation Checklist is a new AID that was formerly CMP-901

NEW AID-907 Review Report Preparation Checklist is a new AID that was formerly CMP-901 Specific AID Enhancements:

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

AID-202 New Step added:

5. Has the accountant considered the independence requirements of professional standards applicable to the engagement promulgated by standard setting bodies other than the AICPA?

Procedure Steps

N

AID-202 New New practice points to address changes to the AICPA Code of Professional Conduct

Procedure Steps

N

AID-202 New New substep for internal audit services that would impair independence: c. Designing, implementing, or maintaining the client’s

monitoring activities (i.e., procedures performed to assess whether components of internal control are present and functioning).

Procedure Steps

Y ET 101-3

AID-801 New Columns added to "Fluctuation" tab to document accountant expectation and the basis for the accountant expectation.

Table N

Knowledge-Based Compilation Documents (KBCs) Specific KBC Enhancements:

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

KBA-201 New 2. Primary location of the CIRA. Procedure Steps

N

KBC-901 Delete 3. Before reissuing, or consenting to the reissue of, a report previously issued on the financial statements of a prior period, we obtained representation letters from management of the former client and from the successor accountant.

Text N

KBC-901 Modify Going Concern documentation step modified to read as follows:

3. If, during the performance of compilation procedures, evidence or information came to our attention indicating that an uncertainty may exist about the CIRA's ability to continue as a going concern, the engagement documentation includes our consideration of the CIRA’s ability to continue as a going concern for a reasonable period of time.

Table N

KBC-901 Delete Deleted the following steps that duplicate procedures performed elsewhere: 8. All required programs and checklists have been

completed and signed off. 9. All open or outstanding matters have been resolved. 10. All reviewers’ comments have been properly

addressed in the workpapers and removed.

Table N

KBC-902 New Engagement Partner and Quality Control review sections added with additions to the instructions to address the new sections.

Table N

Knowledge-Based Review Documents (KBRs) Specific KBR Enhancements:

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

KBR-201 New The three acceptance considerations from KBR-202, KBR-202A, and KBR-902A moved into this review acceptance/continuance program and other forms were deleted from the toolset.

Table N

KBR-901 Modify Documentation of significant matters covered in inquiries moved from substep to main step

Table N

KBR-901 Delete 3. Before reissuing, or consenting to the reissue of, a report previously issued on the financial statements of a prior period, we obtained representation letters from management of the former client and from the successor accountant.

Text N

KBR-901 Modify Going Concern documentation step modified to read as follows: 3. If, during the performance of review procedures,

evidence or information came to our attention indicating that an uncertainty may exist about the entity's ability to continue as a going concern, the engagement documentation includes our consideration of the entity’s ability to continue as a going concern for a reasonable period of time.

Table N

KBR-901 Modify Documentation step modified to read as follows: 8. Engagement documentation includes significant

findings or issues, the actions taken to address them, and the basis for the final conclusions reached.

Table N

KBR-901 Delete The following duplicate steps were deleted:

a. The reconciliation of the accounting records to the financial statements or other reviewed information.

b. Findings or issues that were deemed to be significant, the actions taken to address them, and the basis for the final conclusions reached, including: (1) Significant matters that involved the

selection, application, and consistency of accounting principles regarding the financial statements, including related disclosures (e.g., accounting for complex or unusual transactions; estimates and uncertainties, and management assumptions; or other financial reporting matters).

(2) Results of procedures that indicated that the financial information or disclosures could be materially misstated and our responses.

c. Discussions of significant findings or issues with management and others.

d. Information that contradicts or is inconsistent with the accountant’s final conclusions about a

Table N

Tool

Type of Change


Location

Based on Standard

Y/N

Standard Reference

significant matter, and how those contradictions or inconsistencies were addressed.

KBR-901 Delete Deleted the following steps that duplicate procedures performed elsewhere: 8. All required programs and checklists have been

completed and signed off. 9. All open or outstanding matters have been resolved. 10. All reviewers’ comments have been properly

addressed in the workpapers and removed.

Table N

KBR-902 New Engagement Partner and Quality Control review sections added with additions to instructions to address the new sections.

Table N

Reports (RPTs):

NEW RPT-1100A a new tailoring questionnaire that assists the auditor in determining the proper accountant’s report to use for

a compilation report based on the conditions identified during the audit engagement.

NEW RPT-1100B a new tailoring questionnaire that assists the auditor in determining the proper accountant’s report to use for

a review report based on the conditions identified during the audit engagement.

All applicable reports have been modified to include a paragraph on required supplementary information about future major

repairs and replacements with a footnote for alternative language when all or part of the required supplementary information

has been omitted.

New Compilation and Review Reports:

RPT-1121 Compilation Report: Departure from U. S. GAAP—Variable Interest Entity Assessment Not Performed

RPT-1123 Compilation Report: Departure from U.S. GAAP—Disclosures Omitted and Effect Has Been Determined

RPT-1124 Compilation Report: Departure from U.S. GAAP—Disclosures Omitted and Effect Has Not Been Determined

RPT-1126 Compilation Report: Departure from U.S. GAAP with Emphasis of Matter—Limitations of Financial Statements Due to Pervasiveness of Departure

RPT-1130 Compilation Report: Reference to Previous Year’s Financial Statements Revised to Correct a Departure from U.S. GAAP

RPT-1131

Compilation Report: Correction of Report Issued on Previous Year’s Financial Statements

RPT-1134 Compilation Report: Financial Statements Omit Substantially All Disclosures—Prior Year Audited and Did Not Omit Substantially All Disclosures

RPT-1135

Compilation Report: Financial Statements Omit Substantially All Disclosures—Prior Year Reviewed And Did Not Omit Substantially All Disclosures

RPT-1138 Compilation Report: Reference To Predecessor Accountant’s Compilation Report on Previous Year’s Financial Statements That Included a Modification

RPT-1139 Compilation Report: Reference To Previous Year’s Review Report When Predecessor Accountant’s Report Is Not Presented

RPT-1140 Compilation Report: Reference to Previous Year’s Audit Report When Predecessor Auditors’ Report Is Not Presented

RPT-1141 Compilation Report: Includes Reporting on Previous Year’s Financial Statements Compiled by Predecessor Accountant and Successor Accountant Is Responsible for Reporting on the Restated Financial Statements (Includes Optional Paragraph Referring to Restatement)

RPT-1142 Compilation Report: Successor Accountant Compiles Restatement Adjustment and

Disclosures Are Included RPT-1143 Compilation Report: Successor Accountant Compiles Restatement Adjustment and

Disclosures Are Omitted RPT-1144 Compilation Report: Compiled Financial Statements Presented with Prior-Period Financial

Statements Reviewed by a Predecessor Accountant Who Has Ceased Operations RPT-1145 Compilation Report: Compiled Financial Statements Presented with Prior-Period Financial

Statements Compiled by a Predecessor Accountant Who Has Ceased Operations RPT-1146 Compilation Report: Compiled Financial Statements Presented with Prior-Period Financial

Statements Audited by a Predecessor Accountant Who Has Ceased Operations RPT-1149

Compilation Report: Schedule of Depreciation–Income Tax Basis

RPT-1162 Review Report: Reference to Work Performed by Another Accountant RPT-1170

Review Report: Supplementary Information Has Been Compiled

RPT-1177 Review Report: Required Supplementary Information Contains Material Departures from Prescribed Guidelines

RPT-1180 Review Report: Departure from U.S. GAAP—Variable Interest Entity Assessment Has Not Been Performed

RPT-1184

Review Report: Departure from U.S. GAAP—Financial Statements Contain a Departure That Prevents Them from Being Misleading

RPT-1185 Review Report: Departure from U.S. GAAP with Emphasis of Matter—Limitations of Financial Statements Due to Pervasiveness of Departure

RPT-1188 Review Report: Reference to Previous Year’s Financial Statements Revised to Correct a Departure from U.S. GAAP

RPT-1189 Review Report: Correction of Report Issued on Previous Year’s Financial Statements RPT-1191 Review Report: Current Year’s Financial Statements Reviewed/Prior Year’s Compiled

Financial Statements Are Revised to Correct Departure from U.S. GAAP RPT-1192 Review Report: Current Year Reviewed, Prior Year Audited By Same Firm RPT-1193 Review Report: Reference to Previous Year’s Audit Report When Predecessor Auditor’s

Report Is Not Presented RPT-1194 Review Report: Reference to Previous Year’s Compilation Report When Predecessor

Accountant's Report Is Not Presented RPT-1195 Review Report: Successor Accountant Reviews Restatement Adjustment RPT-1200 Review Report: Special-Purpose Financial Presentation That Is an Incomplete Presentation

Prepared in Accordance with a Contractual Agreement But Is Otherwise in Conformity with U.S. GAAP

RPT-1201 Review Report: Special-Purpose Financial Presentation Based on a Presentation Established in a Contractual Agreement and Different from U.S. GAAP or OCBOA

Correspondence Documents (CORs)

New Correspondence Documents: COR-223 Engagement Letter Compilation—Multiple Financial Statement Types (Including Statements Not Intended for

Third- Party Use and Statements with All Disclosures Omitted) COR-224 Engagement Letter: Compilation— Specified Elements, Accounts, or Items of a Financial Statement COR Series have been renumbered as follows:

2013 2012 Title

COR-220 COR-218 Engagement Letter: Compilation

COR-221 COR-219 Engagement Letter: Compilation—Prior Year Compiled by Other Accountants

COR-222 COR-220 Engagement Letter: Compilation—Financial Statements Not Intended for Third-Party Use

COR-223

Engagement Letter Compilation—Multiple Financial Statement Types (Including Statements Not Intended for Third- Party Use and Statements with All Disclosures Omitted)

COR-224 Engagement Letter: Compilation— Specified Elements, Accounts, or Items of a Financial Statement

COR-225 COR-209 Engagement Letter: Review

COR-226 COR-223 Predecessor Accountant’s Letter Requesting a Written Communication from the Successor Accountant Concerning Access to Engagement Documentation

COR-227 COR-224 Representation Letter: Successor Accountant to Predecessor Accountant Concerning Matters Applicable to the Previous Year’s Compiled Financial Statements

COR-228 COR-225 Communication to Client When the Accountant May Be Required by Law, Regulation, or Engagement Contract to Provide Access to the Engagement Documentation

COR-229 COR-226 Communication to Client When the Accountant Is Requested to Provide Access to the Engagement Documentation

COR-230 COR-227 Letter to Regulator Prior to Allowing a Regulator Access to the Engagement Documentation

COR-231 COR-228 Communication with Predecessor Accountant Prior to Client/Engagement Acceptance

COR-232 COR-229 Request from Client to Predecessor Accountant to Release Information to Successor Accountant

COR-910 COR-908 Management Representation Letter: Compilation Engagement

COR-911 COR-909 Management Representation Letter: Review Engagement

COR-912 COR-910 Updating Management Representation Letter: Review Engagement

Resource Documents (RESs)

RES-021 (formerly RES-019) has been updated for new applicable guidance.

RES-022 (formerly RES-021) modified as appropriate to incorporate new workpapers and realignment of workpaper numbering schemes.

In addition, forms and practice aids throughout have been updated, where applicable, to take into account:

Statement on Standards for Accounting and Review Services No. 20 (SSARS-20), Revised Applicability of Statements on Standards for Accounting and Review Services;

AR Section 9080, Compilation of Financial Statements-Accounting and Review Services Interpretations of Section 80;

AR Section 9090, Review of Financial Statements-Accounting and Review Services Interpretations of Section 90; and

AICPA Statement on Quality Control Standards No. 8 (SQCS-8), A Firm's System of Quality Control (Redrafted).