On 06/30/2013 the Audit Manual was updated. For a markup copy ...

More documents

Recommendations

Info

Fraud Risk AssessmentCurrent Developments and Other Matters – Appendix B have a financial benefit or burden relationship or (2) management (below the level of the elected officials) of the primary government have operational responsibility (as defined in paragraph 8a) for the activities of the component unit. New criteria also are added to require blending of component units whose total debt outstanding is expected to be repaid entirely or almost entirely with resources of the primary government. The blending provisions are amended to clarify that funds of a blended component unit have the same financial reporting requirements as a fund of the primary government. Lastly, additional reporting guidance is provided for blending a component unit if the primary government is a business-type activity that uses a single column presentation for financial reporting. This Statement also clarifies the reporting of equity interests in legally separate organizations. It requires a primary government to report its equity interest in a component unit as an asset. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. Earlier application is encouraged. How the Changes in This Statement Improve Financial Reporting The requirements of this Statement result in financial reporting entity financial statements being more relevant by improving guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity. The amendments to the criteria for including component units allow users of financial statements to better assess the accountability of elected officials by ensuring that the financial reporting entity includes only organizations for which the elected officials are financially accountable or that are determined by the government to be misleading to exclude. The amendments to the criteria for blending improve the focus of a financial reporting entity on the primary government by ensuring that the primary government includes only those component units that are so intertwined with the primary government that they are essentially the same as the primary government, and by clarifying which component units have that characteristic. For primary governments that are business-type activities reporting in a single column, the guidance for reporting blended component units allows users to better distinguish between the primary government and its component units by requiring condensed combining information to be included in the notes to the financial statements. Lastly, the requirements for reporting equity interests in component units help ensure that primary government financial statements do not understate their financial position and provide for more consistent and understandable display of those equity interests. 3. GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements The objective of this Statement is to incorporate into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure. APP.B-5
Fraud Risk AssessmentCurrent Developments and Other Matters – Appendix B Hereinafter, these pronouncements collectively are referred to as the “FASB and AICPA pronouncements.” This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, thereby eliminating the election provided in paragraph 7 of that Statement for enterprise funds and business-type activities to apply post-November 30, 1989 FASB Statements and Interpretations that do not conflict with or contradict GASB pronouncements. However, those entities can continue to apply, as other accounting literature, post-November 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements, including this Statement. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. Earlier application is encouraged. The provisions of this Statement generally are required to be applied retroactively for all periods presented. Organization of This Statement The provisions of this Statement are organized by topic. Each topic contains provisions derived from FASB and AICPA pronouncements that address the subject matter. The order in which the topics are presented corresponds to the order of the primary locations within the GASB Codification of Governmental Accounting and Financial Reporting Standards, where the topics are codified. How the Changes in This Statement Will Improve Financial Reporting The requirements in this Statement will improve financial reporting by contributing to the GASB’s efforts to codify all sources of generally accepted accounting principles for state and local governments so that they derive from a single source. This effort brings the authoritative accounting and financial reporting literature together in one place, with that guidance modified as necessary to appropriately recognize the governmental environment and the needs of governmental financial statement users. It will eliminate the need for financial statement preparers and auditors to determine which FASB and AICPA pronouncement provisions apply to state and local governments, thereby resulting in a more consistent application of applicable guidance in financial statements of state and local governments. In addition, all FASB and AICPA pronouncements became nonauthoritative literature for the private sector on July 1, 2009, the effective date of the FASB Accounting Standards Codification. Although certain FASB and AICPA pronouncements are still available in the archive section of the FASB’s Codification on a limited basis, this Statement will make accessible in the GASB’s authoritative literature all applicable accounting and financial reporting guidance previously residing only in the FASB and AICPA pronouncements. 4. GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position APP.B-6
Page 1 and 2:
S T A T E O F T E N N E S S E E DEP
Page 3 and 4:
SPECIAL PURPOSE GOVERNMENTS (INCLUD
Page 5 and 6:
Trust Funds - Procedures IJ-5 Resid
Page 7 and 8:
PREFACE This audit manual supersede
Page 9 and 10:
Introduction This manual sets forth
Page 11 and 12:
(9) Establish minimum standards for
Page 13 and 14:
Section 9-3-213, Tennessee Code Ann
Page 15 and 16:
SECTION A GENERAL INFORMATION Compt
Page 17 and 18:
Auditing Standards and Requirements
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
SECTION B REPORTING AND AUDITING RE
Page 33 and 34:
Reporting and Auditing Requirements
Page 35 and 36:
SECTION C REPORTING AND AUDITING RE
Page 37 and 38:
Reporting and Auditing Requirements
Page 39 and 40: Reporting and Auditing Requirements
Page 43 and 44: SECTION D REPORTING AND AUDITING RE
Page 51 and 52: SECTION E REPORTING AND AUDITING RE
Page 59 and 60: SECTION G REPORTING AND AUDITING RE
Page 61 and 62: SECTION H REPORTING AND AUDITING RE
Page 63 and 64: SECTION I REPORTING AND AUDITING RE
Page 65 and 66: SECTION IJ REPORTING AND AUDITING R
Page 75 and 76: SECTION JK QUICK REFERENCE LINKS Au
Page 77 and 78: Quick Reference Links - Section JK
Page 79 and 80: Example Schedules - Section APP.A A
Page 81 and 82: Example Schedules - Section APP.A S
Page 83 and 84: Example Schedules - Section APP.A S
Page 85 and 86: Example Schedules - Section APP.A F
Page 87 and 88: Fraud Risk AssessmentCurrent Develo
Page 89: Fraud Risk AssessmentCurrent Develo
Page 101 and 102: Audit Procedures - Section APP.C 2.
Page 103 and 104: Audit Procedures - Section APP.C 2.
Page 105 and 106: Audit Procedures - Section APP.C (C
Page 107 and 108: Laws and Regulations - Section APP.
Page 121 and 122: APPENDIX E MISCELLANEOUS Audit Proc
Page 123 and 124: Miscellaneous - Section APP.E APP.E
Page 131 and 132: 47 Miscellaneous - Section APP.E AP
Page 139 and 140: EXAMPLE OF A PROPOSAL EVALUATION ME
show all

On 06/30/2013 the Audit Manual was updated. For a markup copy ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?