This book provides a review of the top accounting and auditing issues faced by preparers of governmental and not-for-profit financial statements and their auditors. Key areas covered include: GASB 87, Leases; revenue recognition, including grants and contracts; risk assessment; and financial reporting.
Key topics include:
- · Current GASB developments
- · Audit issues related to GASB developments
- · Recent GASB pronouncements and their impact on accounting and reporting
- · Top advice from the AICPA’s Technical Hotline and the GASB Technical Inquiry System
Table of Contents
Chapter 1 1-1
GASB Statement No. 87, Leases 1-1
Major areas of inquiry 1-2
Background 1-3
Applicability of GASB Statement No 87 1-5
Terms and their application 1-6
Overview of requirements of GASB Statement No 87 1-9
Financial reporting 1-26
Implementation challenges 1-27
Summary 1-31
Chapter 2 2-1
Revenue Recognition by Not-for-Profit Entities 2-1
Major areas of inquiry 2-2
Overview 2-3
Accounting for contributions 2-6
Agency transactions 2-11
Exchange transaction or contribution 2-16
Case study 2-22
Summary 2-23
Practice questions 2-24
Chapter 3 3-1
Risk Assessment and Related Documentation 3-1
Major areas of inquiry 3-2
Background 3-3
Risk assessment and professional standards 3-5
Risk assessment procedures 3-6
Understanding internal control 3-9
Assessing the risks of material misstatement 3-11
Responses to the risk of material misstatement and linking results of risk assessment to the audit procedures 3-13
Summary 3-21
Practice questions 3-22
Chapter 4 4-1
GASB Statement No. 83, Certain Asset Retirement Obligations 4-1
Major areas of inquiry 4-2
Background 4-3
Overview of GASB Statement No 83 4-4
Recognition and measurement of AROs 4-6
Disclosures relating to AROs 4-11
Financial reporting 4-13
Implementation challenges 4-14
Summary 4-17
Chapter 5 5-1
Accounting for Special Events by Not-for-Profit Entities 5-1
Major areas of inquiry 5-2
Overview 5-3
Revenue recognition 5-4
Reporting costs relating to special events 5-6
Special events accounting and reporting considerations 5-8
Reporting special events in the statement of activities 5-15
Summary 5-17
Practice questions 5-18
Chapter 6 6-1
Audit Sampling 6-1
Major areas of inquiry 6-2
Overview 6-3
Uncertainty and audit sampling 6-5
Approaches to audit sampling 6-8
Evaluating the results of sampling 6-15
Summary 6-18
Practice questions 6-19
Chapter 7 7-1
The Financial Reporting Model for Not-for-Profit Entities 7-1
Major areas of inquiry 7-2
Overview 7-3
Key changes in ASU No. 2016-14 7-4
Initial implementation and subsequent application considerations 7-13
Summary 7-18
Practice questions 7-19
Chapter 8 8-1
Government Auditing Standards - Independence, Competence, and Continuing Professional Education 8-1
Major areas of inquiry 8-2
Overview 8-3
Independence 8-5
GAGAS conceptual framework approach to independence 8-7
Provision of nonaudit services to audited entities 8-16
Consideration of specific nonaudit services 8-21
Documentation 8-27
Competence and CPE 8-29
Summary 8-34
Practice questions 8-35
Appendix A A-1
ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) A-1
ASU No. 2014-09: Revenue from Contracts with Customers, as Amended A-3
Appendix B B-1
Accounting Standards Update No. 2018-08: Not-For-Profit Entities (Topic 958): Clarifying the Scope and The Accounting Guidance for Contributions Received and Contributions Made B-1
Glossary Glossary 1
Index Index 1
Solutions Solutions 1
Chapter 1 Solutions 1
Chapter 2 Solutions 4
Chapter 3 Solutions 7
Chapter 4 Solutions 9
Chapter 5 Solutions 10
Chapter 6 Solutions 12
Chapter 7 Solutions 16
Chapter 8 Solutions 18
