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

Fraud Risk AssessmentCurrent Developments and Other Matters – Appendix B
This Statement provides financial reporting guidance for deferred outflows of resources
and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial
Statements, introduced and defined those elements as a consumption of net assets by the
government that is applicable to a future reporting period, and an acquisition of net assets
by the government that is applicable to a future reporting period, respectively. Previous
financial reporting standards do not include guidance for reporting those financial
statement elements, which are distinct from assets and liabilities.
Concepts Statement 4 also identifies net position as the residual of all other elements
presented in a statement of financial position. This Statement amends the net asset
reporting requirements in Statement No. 34, Basic Financial Statements—and
Management’s Discussion and Analysis—for State and Local Governments, and other
pronouncements by incorporating deferred outflows of resources and deferred inflows of
resources into the definitions of the required components of the residual measure and by
renaming that measure as net position, rather than net assets.
The provisions of this Statement are effective for financial statements for periods beginning
after December 15, 2011. Earlier application is encouraged.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will improve financial reporting by standardizing the
presentation of deferred outflows of resources and deferred inflows of resources and their
effects on a government’s net position. It alleviates uncertainty about reporting those
financial statement elements by providing guidance where none previously existed.
5. GASB Comprehensive Implementation Guide (CIG) – 2012-2013 is available within
Checkpoint.
6. AICPA SAS 121, Revised Applicability of SAS 100, Interim Financial Information
7. AICPA SAS 122, Clarification and Recodification
This statement contains the Preface to Codification of Statements on Auditing Standards,
Principles Underlying an Audit Conducted in Accordance With Generally Accepted
Auditing Standards, and 39 clarified SASs. This statement recodifies and supersedes all
outstanding SASs through No. 121 except
• SAS 51, Reporting on Financial Statements Prepared for Use in Other Countries;
• SAS 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going
Concern, as amended;
• SAS 65, The Auditor’s Consideration of the Internal Audit Function in an Audit of
Financial Statements;
• SAS 87, Restricting the Use of an Auditor’s Report;
• the following clarified SASs that were issued to address practice issues timely and are
already effective:
‣ SAS 117, Compliance Audits (issued December 2009);
‣ SAS 118, Other Information in Documents Containing Audited Financial Statements
(issued February 2010);
‣ SAS 119, Supplementary Information in Relation to the Financial Statements as a
Whole (issued February 2010); and
APP.B-7