The American Institute of Certified Public Accountants (AICPA) has released new Technical Questions and Answers guidance under Section 9160, Other Reporting Issues, as follows:
- Section 9160.31, Following Accounting Standards as Promulgated by FASB by a State or Local Governmental Entity, which deals with the question of how an auditor should determine whether an entity (or component thereof, such as a component unit) is a state or local government for purposes of determining whether the entity is following the appropriate accounting standards;
- Section 9160.32, Reporting on Accounting Standards as Promulgated by FASB by a State or Local Government, which provides guidance on how an auditor should report on financial statements of an entity or component meeting the definition of a state or local government that prepares its financial statements under FASB rules;
- Section 9160.33, Engagement Acceptance When a State or Local Government Elects to Follow a Special Purpose Framework, which discusses the auditor’s responsibilities concerning the acceptability of the special purpose framework used by management of the state or local government entity;
- Section 9160.34, Accounting Standards as Promulgated by FASB as a Special Purpose Framework, advising that FASB accounting standards cannot be considered a special purpose framework for an entity that uses GASB standards; and
- Section 9160.35, Reporting on Indian Tribe Financial Statements Prepared in Accordance With Accounting Standards as Promulgated by FASB, which discusses whether an auditor may report that the financial statements of an Indian tribe that meets the definition of a state or local government are presented, in all material respects, in accordance with both the appropriate GAAP framework (that is, accounting standards as promulgated by GASB) and accounting standards as promulgated by FASB.
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