Return
to Audit Services Page
Printer
Friendly
Consulting
Services Help CPA Firms Maintain Client Independence
when
Faced with SAS 115 "Material Weakness" Rule and
FIN 48 Implementation
As a
service for other certified public accounting firms, and
faced with the Statement on Auditing Standards No. 115 (SAS
115) "material weakness" independence issue and Accounting
for Uncertainty in Income Taxes No. 48 (FIN 48), Cottrill
Arbutina provides a trusted outsourced solution that works
to the benefit of all parties involved. This approach allows
CPA firms to maintain their current auditor status with
their client and with full independence.
SAS
115 - Under SAS 115, non-profit or governmental
clients of CPA firms now need to completely separate their
audit services from accounting and financial statement preparation.
This typically means that two CPA firms are needed to complete
a non-profit/government engagement rather than one - an
administrative and time-consuming headache most clients
would prefer to avoid.
FIN
48 - FIN 48 goes into effect if an organization
takes an "aggressive" tax deduction. In these situations,
the auditors must disclose that the deduction is an aggressive
position, disclose the probability that the Internal Revenue
Service will not allow it and then post an adjustment to
the company books.
Typically,
the audit services that a CPA firm will no longer be able
to perform while remaining independent are the following:
- Year-End Closings - Accounts
receivable/depreciation, payables, accruals;
- Audit Schedules - fixed
assets, pre-paid detail, accrual account detail, trial
balance crosswalks;
- Reports - Audit financial
statements, audit footnotes, Form 990 and disclosures,
state forms, grant reports;
- Consulting - Payroll
assistance, risk analysis and governance policies; and
- FIN 48 - Calculations and related disclosures.
For
CPA firms faced with this position, Cottrill Arbutina serves
in the "second firm" role and does so in a manner
that protects the sanctity of the primary audit firm's client
relationship. In fact, Cottrill Arbutina is willing to sign
a limited non-compete agreement to that effect for the primary
audit firm's peace of mind.
Advising
closely held businesses, non-profit organizations and governments
has been the core of Cottrill Arbutina's practice for several
decades. The firm serves many of the top regional credit
unions as ranked by asset size in the Pittsburgh Business
Times , and more than two-thirds of the public school
districts in Beaver County, as well as many local municipalities.
For
more detail Cottrill Arbutina's ability and experience to
serve other CPA firms' clients, visit www.cottrillarbutina.com/indspec.htm.
Return
to Audit Services Page
|
