| Dear Center Members: |
This GAQC Alert informs you about the following new resources and updates:
- A new GAQC Practice Aid on documenting independence considerations when performing nonaudit services in audits under Government Auditing Standards (i.e., the Yellow Book).
- The GAQC 2023 Office of Management and Budget (OMB) Compliance Supplement Resource Center is now available.
- The GAQC comment letter on the 2023 OMB Compliance Supplement (Supplement) is now posted.
- The Department of Education has issued updated guidance for auditing the 90/10 revenue calculation.
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Yellow Book Independence Practice Aid
Documentation of Yellow Book independence considerations related to the performance of nonaudit services has been an area of focus in federal reviews of audit quality and in peer reviews. The GAQC has issued a nonauthoritative Practice Aid, Evaluating and Documenting Independence Threats of Nonaudit Services in Government Auditing Standards Engagements, which provides an illustration of one methodology that could be used by an auditor to evaluate and document threats to independence and the application of safeguards. While use of the Practice Aid is not required, auditors should consider reviewing it to determine whether there are opportunities to enhance your current methodologies and Yellow Book independence-related documentation.
2023 Supplement Resource Center
The GAQC annually provides a Compliance Supplement Resource Center to assist auditors in accessing and better understanding key changes in the Supplement. The 2023 Compliance Supplement Resource Center is now available and includes links to the OMB posting of individual Supplement sections. As a member benefit, it also provides our observations on various sections and notes several errors we have identified. We encourage you to review the information in the Resource Center as it may be relevant to your future single audits. If you are still working on a 2022 single audit, you can still access the GAQC posting of the 2022 Compliance Supplement Resource Center.
Advocacy News
The GAQC issued a comment letter to OMB on the 2023 OMB Compliance Supplement (Supplement). OMB requests comments on each year's Supplement to provide their staff with suggestions for change and improvements as they begin developing the subsequent year's Supplement. We recommend you review the letter since some of our comments may be relevant to your single audit practice.
Education News
If you perform engagements under the March 2023 Guide for Financial Statement Audits of Proprietary Schools and For Compliance Attestation Examination Engagements of Proprietary Schools and Third-Party Servicers Administering Title IV Programs (Guide) you should read recently issued Dear CPA Letter CPA-23-02, Revised 90/10 Revenue Calculation Testing and Example Footnote. CPA-23-02 describes recent regulatory changes to the 90/10 Rule and includes two important enclosures that amend chapter 2 of the Guide. The first enclosure provides a replacement for current section B.2 addressing the auditor's responsibilities and required procedures relative to the 90/10 revenue calulation. The second enclosure includes a replacement for the example 90/10 Revenue calculation footnote that currently appears in section D-3b.* * * * *
Sincerely,
AICPA Governmental Audit Quality Center |
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| In This Alert |
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| Archived GAQC Web Events |
| A key member benefit is that you and your staff can always listen to archived GAQC Web events. Once on the landing page, use the subtopic filter to more easily find what you are looking for. For example, you can filter to see all single audit related events, Yellow Book events, and others. |
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