The American Institute of Certified Public Accountants (AICPA) recently issued a non-authoritative document, FAQs – State and Local Government Financial Statement Accounting and Auditing Matters and Auditor Reporting Issues Related to COVID-19, for the use of auditors and preparers of financial statements in accordance with Governmental Accounting Standards issued by the Governmental Accounting Standards Board (GASB). The FAQs provide non-authoritative guidance on state and local government-specific accounting and auditing issues, but some of the topics will be of interest to other organization types that follow GASB.
The FAQs address topics organizations in the public sector are facing as a result of the COVID-19 pandemic. Among the topics covered in the FAQ document are the following:
- Subsequent Events
- Management's Discussion and Analysis
- Going Concern
- Operating Versus Non-operating for Proprietary Funds
- Tax Revenue and Delayed Due Dates
- Internal Control Over Financial Reporting
- Other Audit-Specific and Auditor Reporting Considerations (e.g., fraud, risk assessment, management representations)
In addition, the GASB has also released technical bulletin, Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Coronavirus Diseases, to aid stakeholders in the preparation of financial statements impacted by the COVID-19 pandemic.
We encourage public sector entities to review both of the aforementioned resources for guidance in preparing for future audits and for preparation of governmental financial statements.
Readers should not act upon information presented without individual professional consultation.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.