| Dear Center Members: |
This GAQC Alert informs you about several matters including the following:
- Registration information for the next Governmental Audit Quality Center (GAQC) Web event, Pandemic-Related Single Audit Issues and Other Single Audit Updates, scheduled for December 15, 2021;
- A recently issued GAQC article titled Governmental Audit Engagement Letter Considerations Related to the Effect of SAS Nos. 134-140; and
- A memo issued in response to the COVID-19 pandemic by the Government National Mortgage Association (also known as Ginnie Mae or GNMA) which, among other things, allows for the use of alternative procedures in lieu of certain on-site inspection and observation procedures.
|
|
|
Pandemic-Related Single Audit Issues Web Event
The next live GAQC Web event, Pandemic-Related Single Audit Issues and Other Single Audit Updates, will be held on Wednesday, December 15, 2021, from 1:00 PM – 3:00 PM (Eastern Time). Single audits are always challenging, but even more so now due to the COVID-19 pandemic and related historic amounts of federal funding. Further, changes and updates are coming at a fast pace. This event will walk you through a variety of single audit topics aimed at helping you navigate the continuing challenges, with a focus on major program implications. The presenters are Rachel Flanders, CPA, CliftonLarsonAllen, and Amanda Ward, CPA, Plante Moran. Topics to be covered include:
- The introduction of "higher risk" programs and other major program considerations;
- Other challenges and common scenarios that auditors are facing arising from COVID-19 funding; and
- The status of the Office of Management and Budget Compliance Supplement Addenda and other important single audit updates.
GAQC Member Registration with CPE (fee). Access the CPE registration page.
GAQC Member Registration with no-CPE (free). Access the no-CPE registration page.
Governmental Engagement Letter Article
The GAQC article, Governmental Audit Engagement Letter Considerations Related to the Effect of SAS Nos. 134-140, was issued in response to common questions received from members on the implications of AICPA Statement on Auditing Standards on Auditing Standards (SAS) Nos. 134-140 on engagement letters for audits. SAS Nos. 134-140 (also referred to as the reporting suite of standards) made changes to the requirements and guidance for engagement letters. Those standards are generally effective for audits of fiscal periods ending on or after December 15, 2021.
The article includes general engagement letter considerations along with engagement letter considerations relevant to audits performed in accordance with Government Auditing Standards and single audits. The article also refers auditors to the 2021 edition of the AICPA Audit Guide, Government Auditing Standards and Single Audits, which has been updated for engagement letter guidance related to SAS Nos. 134-140.
GNMA COVID-19 Accommodation
On November 23, 2021, Ginnie Mae issued an All Participant Memorandum (APM) 21-08: Extension of Permitting Alternative Procedures for Certain Aspects of Issuer Annual Audit Report (APM 21-08) that should be of interest to our members that perform compliance audits under the Department of Housing and Urban Development (HUD) Consolidated Audit Guide (HUD Audit Guide), Chapter 6, "Ginnie Mae Issuers of Mortgage-Backed Securities Audit Guidance." Please share this information with your colleagues working in the banking/depository institutions area of practice.
Due to the continuing impact of the COVID-19 pandemic, APM 21-08 extends the use of alternative audit procedures originally announced in APM 20-14: "Alternative Procedures Permitted" for Certain Aspects of Issuer Annual Audit Report for Fiscal Year 2020 for Issuers with a fiscal year ending on or before March 31, 2022. The alternative procedures are in lieu of the suggested audit procedures provided in Chapter 6 of the HUD Audit Guide requiring on-site inspection and observation relevant to document custodians. APM 21-08 also continues the requirement established in APM 20-14 that Issuers must ensure that the audited financial statement and audit report documentation submitted to Ginnie Mae details the condition necessitating the use of an alternative procedure, a description of the alternative procedure used, and the independent auditor's rationale outlining how the alternative procedures met the original objective of the document custodian review audit. Please refer to GAQC Alert #421 which provides GAQC recommendations for this communication requirement, as well as other considerations when alternative procedures can be performed. * * * * *
Sincerely,
AICPA Governmental Audit Quality Center |
|
 |
|
| In This Alert |
|
|
| Head Start Event Available |
|
|
| Additional Resources |
|
|
| Stay Informed |
We welcome any suggestions or questions - please send them by e-mail at GAQC@aicpa.org.
Members of the Governmental Audit Quality Center (GAQC) may only reproduce and distribute GAQC Alerts internally within the firm or state audit organization (SAO) to other Center member firm/SAO personnel as part of the organizations' professional services. For information about permission to copy any part of these documents for redistribution or inclusion in other work, please click on the copyright notice below or phone the copyright permission hotline (919) 402-4031.
©2021 Association of International Certified Professional Accountants.
Online privacy policies and copyright information. |
|
|
