LIST OF SUBSTANTIVE CHANGES AND ADDITIONS. PPC's Guide to Audits of Nonprofit Organizations

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1 Route To: Partners Managers Staff File LIST OF SUBSTANTIVE CHANGES AND ADDITIONS PPC's Guide to Audits of Nonprofit Organizations Twenty eighth Edition (February 2015) Highlights of this Edition The following are some of the important new features of the 2015 Edition of PPC's Guide to Audits of Nonprofit Organizations: Revised AICPA Code of Professional Conduct. The AICPA published a revised Code of Professional Conduct in 2014, which is primarily effective as of December 15, When applicable, we have fully updated your Guide, including the practice aids, for the revised Code of Conduct. New SAS on Using the Work of Internal Auditors. SAS No. 128, Using the Work of Internal Auditors, replaces the guidance on using internal audit, whether using the work of the internal audit function or using personnel from the internal audit function in a direct assistance capacity. We ve updated your guidance and practice aids for the issuance of SAS No SSARS No. 21. Your Guide is updated for the issuance of SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, which clarifies and revises the compilation and review standards and introduces a financial statement preparation service. SSARS No. 21 is effective for engagements performed for periods ending on or after December 15, 2015, with early implementation permitted. You can use our updated guidance and practice aids to efficiently perform compilation and review engagements under the requirements of SSARS No. 21. New Practice Aids. Your Guide includes New Confirmation and Correspondence Letter. We ve added a new letter that will help component auditors communicate findings and results of their work to the group auditor. New Form. We ve added a new form that can be used to document conclusions on compliance with independence requirements applicable to the engagement, including the identification of any threats to independence and safeguards that apply. Also, the form can be used to satisfy the documentation requirements pertaining to the understanding with the client of permissible nonattest services to be performed. Accounting Standards Update. Since the last edition of this Guide, the Financial Accounting Standards Board (FASB) has issued 14 new Accounting Standards Updates (ASUs). Where applicable, among other matters, your Guide has been updated For ASU No , Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The ASU changes the requirements for reporting discontinued operations. Your Guide provides guidance on the new definition and criteria for discontinued operations and revised presentation and disclosure requirements. To include a summary of the long anticipated ASU No , Revenue from Contracts with Customers (Topic 606), which was issued in May ASU No introduces a core revenue principle that applies across all industries and revenue transactions. (Because of the extended effective date of ASU No , a future edition of your Guide will be fully updated to further incorporate the applicable provisions of the new standard.) To consider the effect of ASU No , Presentation of Financial Statements Going Concern (Subtopic ): Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern, on the auditor s assessment of the entity s ability to continue as a going concern. npop15sub 1

2 For ASU No , Income Statement Extraordinary and Unusual Items (Subtopic ): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which removes the concept of extraordinary items from GAAP. To address FASB accounting developments that may impact audits of nonprofit organizations. In addition, we have discussed the status of selected ongoing FASB projects. Updated Guidance on Single Audits. If you perform Single Audits, you know how complex the auditing requirements are and that they change every year. Your Guide provides up to date guidance and practice aids for performing and reporting on Single Audits, including changes in the 2014 OMB Circular A 133 Compliance Supplement, changes in the most recent edition of the AICPA Audit Guide, Government Auditing Standards and Circular A 133 Audits, and other important changes in the Single Audit process. Your Guide also includes important new information about the OMB s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which supersedes and streamlines requirements from eight different grant circulars (including OMB Circular A 133) into one set of guidance, and significantly changes the audit process. Although the new audit requirements are effective for December 15, 2015 year end audits, earlier effective dates for award recipients could affect both recipients and their auditors in the current year. Your Guide s discussion of the Uniform Guidance will help you and your clients prepare for the impact of the new audit requirements. Comprehensive, Up to date Disclosure Checklist. The most effective way to ensure you have properly disclosed all of the required information in the financial statements you prepare is to use our comprehensive disclosure checklist. The disclosure checklist for nonprofit organizations has been completely updated for the ASUs issued since the last edition of your Guide. General 1. Changed references throughout the Guide, where applicable, due to the issuance of the AICPA revised Code of Professional Conduct. Various 2. Changed references throughout the Guide, where applicable, for the March 1, 2014 edition of the AICPA Audit and Accounting Guide, Not for Profit Entities. 3. Made miscellaneous revisions, where applicable, to existing discussions on the use of internal auditors to reflect the issuance of SAS No. 128, Using the Work of Internal Auditors. 4. Made miscellaneous revisions due to the issuance of ASU No , Income Statement Extraordinary and Unusual Items (Subtopic ): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. 5. Changed references from OCBOA to special purpose framework. 6. Where necessary, changed references to the Documentation and Analysis of Group Components at NPO CX 3.5 that was previously numbered NPO CX CHAPTER 1 Background Information 1. Added a footnote and a discussion about the issuance of the AICPA revised Code of Professional Conduct. 2. Added a note discussing the AICPA s plan to change the reference to its Technical Questions and Answers section in the Technical Practice Aids. 3. Included new information about state level governance requirements. 4. Updated the status of the FASB project to improve nonprofit organization financial statement presentation. Various Various Various Various Various and

3 5. Updated for current events in the nonprofit community, including IRS investigation and reorganization, investigative reporting in the press, the need for better governance, and the dangers of social media. 6. Expanded various discussions regarding the implementation of the OMB s Uniform Guidance. 7. Updated the discussion on Yellow Book independence requirements. CHAPTER 2 Pre engagement Activities 1. Updated discussions and added a footnote to reflect the issuance of the AICPA revised Code of Professional Conduct. 2. Discussed a new practice aid, NPO CX 1.2, that can be used to document conclusions on compliance with independence requirements applicable to the engagement and the understanding with the client about the performance of nonattest services. 3. Added an exhibit and updated the related discussion on the impact on independence of the performance of nonattest services. 4. Updated the discussion on proposing journal entries and preparing financial statements in connection with the audit. 5. Enhanced the discussion about oversight of nonaudit services with regard to Yellow Book audits. 6. Included guidance for Yellow Book peer reviewers issued by the AICPA , , and and Various , , , and Exhibit Updated Yellow Book competency requirements Modified the discussion on the client signing the engagement letter. 9. Updated and expanded the items that are particularly pertinent to Yellow Book audits and generally included in engagement letters Updated the engagement letter discussion on collection of fees and expenses relating to client litigation when the auditor is not a party. 11. Modified the engagement letter discussions on arbitration and mediation. 12. Added a footnote discussing the AICPA s project to clarify the attestation standards and a recent proposed SSAE that would supersede AT Added a footnote discussing the AICPA s plan to change the reference to its Technical Questions and Answers section in the Technical Practice Aids Made reference to a new letter at NPO CL Provided clarifications to the discussions of component materiality and

4 CHAPTER 3 Risk Assessment and Planning CHAPTER 4 Assessing Risks and Developing the Detailed Audit Plan 1. Added AU C 610, Using the Work of Internal Auditors, to the list of authoritative literature. 2. Where applicable, modified the exhibit and paragraphs to reflect amendments to AU C 315 and the issuance of SAS No In connection with inquiries of management and others, updated the discussion of the parties that might be interviewed. 4. Expanded the guidance on the engagement team discussion participants to discuss the roles of component auditors, specialists, and internal auditors. 5. Updated the discussion of the AICPA Audit Risk Alert, General Accounting and Auditing Developments 2014/15, for the latest edition. 6. Added a discussion of developments from the Not for Profit Risk Alert, including crowd funding and OMB updates. 7. Updated the discussion of the AICPA Audit Risk Alert, Government Auditing Standards and Circular A 133 Developments 2014, for the latest edition. 8. Included a discussion about the updated AICPA Risk Assessment Audit Guide and its revisions for the 2013 COSO Framework. 9. Expanded the discussion on the consideration of the internal audit function. 10. Modified the guidance on quantifying planning materiality to discuss AU C In the discussion of materiality and benchmarks, added factors that might be considered and types of benchmarks. 12. In connection with planning materiality, modified the discussion on deciding whether to extend procedures. 1. Expanded the discussion on assertions for presentation and disclosure. 2. Modified the discussion on identifying risks of material misstatement. 3. Added a discussion regarding the evaluation of significant risks to determine whether the risk is pervasive or limited. CHAPTER 5 Substantive 1. Included a footnote regarding the changes to Single Audits under the OMB s new Uniform Guidance. 2. In the discussion on management refusing to allow external confirmations, noted that the results of alternative procedures can be included in the category of nonreplies on NPO CX Updated the exhibit on selected sources of basic economic and industry data Exhibit 3 1; paragraphs 301.4, , , , , , and Exhibit 5 5 4

5 CHAPTER 6 Testing Internal Control 1. Added a footnote discussing the AICPA s plan to change the reference to its Technical Questions and Answers section in the Technical Practice Aids. CHAPTER 7 Audit Sampling in a Nonprofit Organization Audit Engagement Updated the exhibit on tests of controls using audit sampling. Exhibit 7 10 CHAPTER 8 Audit Documentation 1. Added a footnote for the applicability and timeframe for the OMB s Uniform Guidance. 2. Updated the Appendix to reflect audit documentation requirements resulting from SAS No CHAPTER 9 Special Audit and Accounting Considerations for Nonprofit Organizations 1. Updated the discussion on fair value accounting considerations to reflect the FASB s recent actions related to the fair value option for financial instruments. 2. Added footnotes discussing the issuance of ASU No , Presentation of Financial Statements Going Concern (Subtopic ): Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern. 3. Updated the discussion of the FASB/IASB joint project on recognition and measurement guidance for financial instruments. 4. Updated and expanded the discussion of investments held by nonprofit organizations including categories of investments, distinguishing investments from interests in related entities, initial recognition and measurement, subsequent measurement, reporting investment return, market declines, and misappropriation of securities. 5. Enhanced the discussion of audit considerations specific to investments. 6. Revised the discussion on guarantees of a nonprofit organization s debt. 7. Updated the discussion of the contribution element of interest free or below market interest rate loans. 8. Added a footnote discussing the issuance of ASU No , Revenue from Contracts with Customers (Topic 606) Appendix 8A and Enhanced the discussion of auditing service fee receivables Enhanced the discussion of common payroll fraud schemes. Exhibit Expanded the discussion on inventory and other assets to address intangible assets, including goodwill. 12. Updated the discussion regarding audit and accounting considerations related to guarantees, and expanded the discussion to address programmatic guarantees by nonprofit organizations

6 CHAPTER 10 Tax Considerations in Audits of Nonprofit Organizations 1. Added a discussion of the new Form 1023 EZ Updated discussion on the IRS determination process Updated discussion of recent legislation Added discussion on the reorganization of the TE/GE Division of the IRS Enhanced discussion of social media resources from the IRS Updated publications and resources Updated discussion of recent IRS enforcement actions ; Updated the discussion of the impact of national and international disasters on nonprofit organizations Enhanced discussion on the basis of tax exemption Updated discussion of private inurement based on recent private letter rulings. 11. Updated inflation adjusted amounts ; ; : Updated considerations of alternative investments and foreign partnerships. 13. Enhanced guidance on minimum required distributions for private foundations. 14. Noted the issuance of new proposed regulations on UBIT determination Expanded the discussion of UBIT considerations Added discussion on the projects in the Priority Guidance Plan. 17. Discussed recent guidance for tax sheltered annuity plans and 457 deferred compensation plans Updated the discussion of tax exempt bonds Updated developments and current IRS areas of interest Added new discussion on IRS Chief Council Letters CHAPTER 11 Concluding the Audit 1. Added a discussion or footnote discussing the issuance of ASU No , , Exhibit

7 CHAPTER 12 Financial Statements of Nonprofit Organizations 2. Modified the discussion on written representations Added a footnote discussing that financial statement preparation is considered to be a nonattest service under the AICPA revised Code of Professional Conduct for engagements covering periods beginning on or after December 15, Added a discussion regarding the guidance in TIS , Management Representations Regarding Prior Periods Presented That were Audited by a Predecessor Auditor. 5. Modified the discussion regarding disclosures for related parties. 6. Revised the footnote regarding the guidance for preparation of financial statements as a nonattest service. 7. Modified the discussion on risk factors that may affect whether there is a reasonable possibility that a deficiency (or combination of deficiencies) in internal control will result in a misstatement Added a new practice issues section on control deficiencies Added a discussion on communications when there are material weaknesses but no significant deficiencies. 10. Modified the discussion on the communication of the planned scope and timing of the audit due to the issuance of SAS No Expanded the discussion on the Engagement Summary Memorandum. 1. Added a footnote discussing the issuance of ASU No , Revenue from Contracts with Customers (Topic 606). 2. Added a footnote discussing the issuance of ASU No , Income Statement Extraordinary and Unusual Items (Subtopic ): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Clarified the discussion about classification of revenues, gains, and losses with regard to restriction. 4. Added a discussion centered on the issuance of ASU No , Presentation of Financial Statements Going Concern (Subtopic ). 5. Updated the discussion on preparing financial statements using a special purpose framework. 6. Added a discussion on distinguishing interests in related entities from investments. 7. Enhanced the discussion of how nonprofit organizations should report ownership interest in a for profit entity Added a discussion of programmatic investments

8 CHAPTER 13 Auditor's Reports 1. Added a footnote and discussion addressing the issuance of the OMB s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 2. Updated the standard reporting requirements to reflect changes stemming from restricted use reports prepared in accordance with a special purpose framework and when a predecessor auditor reissues a report on financial statements used in comparative financial statements. 3. Added a footnote centered on the issuance of ASU No , Presentation of Financial Statements Going Concern (Subtopic ). 4. Updated the special requirements for financial statements prepared in accordance with a special purpose framework. 5. Clarified guidance on reporting on internal controls under Yellow Book. 6. Updated cautionary language on Single Audit report examples that report under OMB Circular A 133 with respect to new Uniform Guidance. CHAPTER 14 Single Audits 1. Updated for OMB s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 2. Updated the list of documents in PPC s Government Documents Library. 3. Added a discussion about quality control review findings that audit documentation did not provide sufficient evidence that work was performed to support the auditor s opinion(s) on compliance ; Exhibit Exhibit Appendixes 13A 3 and 13E , , Updated for the 2014 Compliance Supplement , , , , , , , , Updated the illustrative SEFA. Exhibit Updated the discussion about issuance of the report on the SEFA Updated the discussion about the data collection form Updated the discussion about using internal auditors

9 CHAPTER 15 Compilation and Review 1. SSARS No. 21 is fully integrated throughout the. Throughout Engagements CONFIRMATION AND CORRESPONDENCE LETTERS (NPO CL) Audit Engagement Letter 1. Updated the language in the letter regarding the preparation of the information return and financial statements. Also, updated the letter for management s responsibilities for NPO CL 1.1, NPO CL 1.2, NPO CL 1.3 nonattest services (along with the associated note). 2. Modified the language in the letter regarding fees. NPO CL 1.1, NPO CL 1.2, NPO CL Updated the note regarding the planned use of the work of the internal audit function or using internal audit personnel to provide direct assistance due to the issuance of SAS No For the note on the schedules and confirmations to be prepared by the client, added expanded language that can be used regarding client assistance. 5. For the note that discusses signing the engagement letter, added guidance when the auditor plans to use internal auditors to provide direct assistance. 6. Revised the letter and practical considerations for changes in professional guidance, including the AICPA revised Code of Professional Conduct. NPO CL 1.1, NPO CL 1.2, NPO CL 1.3 NPO CL 1.1, NPO CL 1.2, NPO CL 1.3 NPO CL 1.1, NPO CL 1.2, NPO CL 1.3 NPO CL 1.1, NPO CL 1.2, NPO CL 1.3 Legal Letters 7. Modified the note referring to the ABA s website. NPO CL 2.1 Management Representation Letters Internal Control Communications Communication with Those Charged with Governance 8. Added items to the practical consideration detailing additional representations that might be obtained. 9. For the practical consideration indicating the periods that representation letters should address, added guidance from TIS , Management Representations Regarding Prior Periods Presented That were Audited by a Predecessor Auditor. 10. For the practical consideration that addresses when there is substantial doubt about the entity s ability to continue as a going concern, provided guidance due to the issuance of ASU No Revised the practical considerations to provide additional clarity, including cautions related to Uniform Guidance. NPO CL 3.1 NPO CL 3.1 NPO CL 3.1 NPO CL Modified the inside address format of the letter. NPO CL 4.1, NPO CL 4.2, NPO CL Modified the letter to indicate the name of the engagement partner. 14. Added a practical consideration addressing the requirements of SAS No NPO CL 5.1 NPO CL 5.1 9

10 Cash Confirmations and Letters Receivable Confirmations and Letters Investments and Securities Confirmations and Letters Other Confirmations and Letters Group and Other Auditor Communications CHECKLISTS AND PRAC TICE AIDS (NPO CX) Application of Practice Aids to Engagements Engagement Acceptance and Continuance Form Engagement Independence and Nonattest Services Documentation Form Evaluating Independence Government Auditing Standards, 2011 Revision Single Audit and Major Program Determination Worksheet 15. Modified the name of the letter to Receipt for Cash Observed by Auditor and modified the wording in the letter. NPO CL Provided additional instructions for the letter. NPO CL 7.1 through Modified the name of the letter to Receipt for Count of Securities Observed by Auditor and modified the wording in the letter. NPO CL Provided additional instructions for the letter. NPO CL 8.3 through Added a practical consideration on adding a listing of NPO CL 12.4 identified related parties. 20. Added a practical consideration related to Uniform Guidance. NPO CL Revised the letter to include suggested language in AU C 600.A Add a reference to the new letter, NPO CL 14.9, to one of the practical considerations. 23. Added a new letter, Letter from Component Auditor to Group Auditor on Results of Work and Findings When Responsibility is Assumed. 1. Updated for the new practice aid added to the Guide and a checklist that was renumbered. 2. Added a factor to consider regarding various services that are now considered to be nonattest services. Made reference to a new practice aid at NPO CX Modified a factor to consider regarding the requirements of AU C and how the related procedures can be documented on NPO CX Modified a factor to consider about concerns about management s integrity. 5. Added a factor to consider about situations where a going concern emphasis of matter has occurred or might be a possibility. 6. Added a factor to consider about whether individuals participating in the engagement are not properly licensed. 7. New form in this edition. (Replaces the previous ET Interpretation Documentation Form. ) 8. Expanded the definitions of threats to independence to provide additional clarity. 9. Revised the instructions for changes to the Single Audit process and revisions to the Compliance Supplement. NPO CL 14.1 NPO CL 14.2 NPO CL 14.4 NPO CL 14.9 NPO CX 0.1 NPO CX 1.1 NPO CX 1.1 NPO CX 1.1 NPO CX 1.1 NPO CX 1.1 NPO CX 1.2 NPO CX 1.3 NPO CX

11 Financial Statement Materiality Worksheet for Planning Purposes Component Materiality Worksheet Understanding the Entity and Identifying Risks Engagement Team Discussion 10. Made minor edits to terminology and wording. NPO CX Provided additional guidance in the instructions and to certain steps. 12. Modified instructions to note that additional documentation or forms may be necessary for identified components. 13. Added a step and practical considerations regarding the understanding of the internal audit function due to the issuance of SAS No Modified the instructions to emphasize that the discussion should include an exchange of ideas or brainstorming. 15. Added a practical consideration noting that the engagement team would not include external specialists and internal auditors. NPO CX 2.2 NPO CX 3.1 NPO CX 3.1 NPO CX 3.2 NPO CX Added an additional discussion item. NPO CX 3.2 Fraud Risk Inquiries Form 17. Provided additional guidance in the instructions. NPO CX Provided additional guidance in the practical considerations NPO CX 3.3 on whom to interview. Audit Inquiries Summary 19. Modified a step on related party transactions. NPO CX 3.4 Form Documentation and Analysis of Group Components 20. Renumbered form. Previously numbered NPO CX NPO CX 3.5 Financial Reporting System Documentation Form IT Environment and General Computer Controls Internal Control System Federal Award Programs Activity and Entity level Control Forms Entity level Control Form for Risk Assessment 21. Added additional minor clarifications. NPO CX Revised the instructions for changes to the Single Audit process and revisions to the Compliance Supplement. 23. Made minor edits and revisions to clarify the form and certain control objectives and controls. NPO CX 4.4 NPO CX 5 series 24. Moved several controls between principles. NPO CX 5.2 Entity Risk Factors 25. Added an additional risk factor to consider and modified NPO CX 6.1 others. Fraud Risk Factors 26. Modified certain fraud factors to consider. NPO CX Expanded a note to emphasize that audit programs need to be tailored to address the nature, cause, and direction of potential misstatements at the relevant assertion level. NPO CX 7.1 Risk of Material Noncompliance Assessment Worksheet Federal Award Programs 28. Revised the instructions for changes to the Single Audit process and revisions to the Compliance Supplement. NPO CX

12 Inherent Risk of Noncompliance Sampling Planning and Evaluation Form for Federal Award Programs Tests of Compliance Assessment Form Federal Award Programs 29. Revised the instructions for changes to the Single Audit process and revisions to the Compliance Supplement. 30. Expanded the item on considering whether the sample provides a reasonable basis for drawing conclusions. Test of Controls Form 31. Modified and added practical considerations on IT dependent controls and the use of inquiries. Tests of Controls Sampling Form for Federal Award Programs Confirmation Summary Form Checklist for Tax related Considerations in a Nonprofit Organization Audit 32. Revised the instructions for changes to the Single Audit process and revisions to the Compliance Supplement. NPO CX 7.4 NPO CX 8.5 NPO CX 10.1 NPO CX Made minor formatting changes. NPO CX Updated federal limits for required compensation documentation. NPO CX 11.7 Closing Entry and Audit 35. Made formatting changes to the form. NPO CX 12.1 Adjustment Form Audit Difference Evaluation 36. Added additional qualitative factors in evaluating materiality. NPO CX 12.2 Form Disclosure Checklist 37. Updated the checklist for disclosure requirements of NPO CX 13 recently issued professional accounting standards. Going Concern Checklist 38. Modified instructions and practical considerations for the NPO CX 16.1 issuance of ASU No Confirmation and 39. Added new confirmation letter to the form. NPO CX 17.4 Correspondence Control AUDIT PROGRAMS CORE (NPO AP) Audit Program for General Planning Other General Planning Audit Program for General Auditing and Completion 1. Added practical considerations due to the issuance of SAS No Modified or added practical considerations to note that activities such as financial statement preparation, cash to accrual conversions, and reconciliations will be considered nonattest services for periods beginning on or after December 15, Added a practical consideration discussing the use of the new confirmation letter at NPO CL Added two new program topics as a result of the issuance of SAS No Added a practical consideration discussing the issuance of ASU No NPO AP 1 NPO AP 1, NPO AP 2 NPO AP 1, Other General Planning NPO AP 1, Other General Planning NPO AP 2 12

13 Audit Program for Federal Award Programs General Audit Program for Investments and Derivatives Audit Program for Support, Receivables, and Receipts Audit Program for Program Service Fees, Revenue, and Receivables Audit Program for Expenses for Program and Supporting Services and Accounts Payable and Other Liabilities Audit Program for Payroll and Related Liabilities 6. Revised the guidance in the instructions about changes to the Single Audit process. NPO AP 3 7. Expanded the step on inquiries about risks of fraud and NPO AP 3 possible noncompliance or abuse. 8. Updated the procedures for determining when the data NPO AP 3 collection form and reporting package were filed. 9. Expanded items to confirm for federal award programs. NPO AP Modified a step and added a practical consideration in the Nonprofit Business Combinations topic as a result of the issuance of ASU No NPO AP 6, Other 11. Added a practical consideration on naming opportunities. NPO AP 7, Basic 12. Added a practical consideration on the issuance of ASU No Added a new program step related to differentiating between contributions, exchange transactions, and transactions that have elements of both. 14. Added a practical consideration on the issuance of ASU No Added a practical consideration discussing PPC s Workpapers for Nonpublic Companies that includes an electronic Interim Receivables Rollforward worksheet. NPO AP 7, Basic NPO AP 7, Basic NPO AP 8, Basic NPO AP 8, Other 16. Added a new program topic related to naming opportunities. NPO AP 8, Other 17. Added a practical consideration on the issuance of ASU No Added a practical consideration for the use of data extraction software (DES). Audit Program for Inventory 19. Added a practical consideration discussing a proposed ASU, Inventory (Topic 330): Simplifying the Measurement of Inventory. Audit Program for Property 20. Added a practical consideration discussing the issuance of ASU No , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Audit Program for Other Assets 21. Added a practical consideration discussing the FASB s proposed ASU and tentative decisions on leases. 22. Added a practical consideration discussing the FASB s proposed ASU and tentative decisions on accounting for goodwill and not for profit entities. NPO AP 10, Basic NPO AP 11, Extended NPO AP 12, Basic NPO AP 13, Basic NPO AP 13, Other NPO AP 14, Basic 13

14 Audit Program for Net Assets Audit Program for Grant and Similar Programs Audit Program for the Schedule of Expenditures for Federal Awards Audit Program for Federal Award Programs Not Included in the Compliance Supplement COMPILATION AND REVIEW PRACTICE AIDS (NPO CR) Engagement Acceptance Form Checklist for a Step down Engagement Illustrative Engagement Letter Compilation Illustrative Engagement Letter Review Compilation, Review, and Approval Form Review, Review, and Approval Form Trial Balance Preparation Checklist Inquiry and Analytical Program 23. Updated the existing discussion of the FASB s implementation of ASC Updated the instructions to reflect the OMB s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 25. Revised the step regarding the management representation letter. 26. Expanded the instructions to include discussion of the Uniform Guidance. NPO AP 16, Basic NPO AP 17, Instructions NPO AP 17, Basic NPO AP 18, Instructions 27. Revised the step on testing the reconciliation of the SEFA. NPO AP 18, Basic 28. Added a step for evaluating whether the SEFA is fairly presented in relation to the financial statements as a whole. 29. Revised the guidance in the instructions about changes to the Single Audit process. 1. Updated to include acceptance questions involving ethical requirements and reliability of information requested as required by SSARS No Added references to SSARS No. 21. Footnote added regarding AR C 80, Compilation Engagements, and forthcoming step down requirements for compilations. 3. Revised the illustrative engagement letter for a compilation to comply with SSARS No Revised the illustrative engagement letter for a review to comply with SSARS No Updated to reflect requirements from SSARS No. 21 and items expected to be included in the AICPA Guide, Review, Compilation, and Financial Statement Preparation Engagements. 6. Updated to include a practical consideration about the issuance of ASU No NPO AP 18, Basic NPO AP 19, Instructions NPO CR 1 NPO CR 2 NPO CR 3.1 NPO CR 3.2 NPO CR 5.1 NPO CR Updated for compliance with SSARS No. 21. NPO CR Updated to include a practical consideration about the issuance of ASU No NPO CR Included procedures related to SSARS No. 21. NPO CR Updated to comply with the requirements of SSARS No. 21. NPO CR 7 14

15 Compilation Reporting Checklist (After the Implementation of SSARS No. 21) Review Reporting Checklist (After the Implementation of SSARS No. 21) Standard Nonprofit Organization Compilation Report (After the Implementation of SSARS No. 21) Nonprofit Organization Compilation Report Substantially All Disclosures Omitted (After the Implementation of SSARS No. 21) Standard Nonprofit Organization Review Report (After the Implementation of SSARS No. 21) Illustrative Representation Letter Review (After the Implementation of SSARS No. 21) 11. Added a new practice aid which complies with the requirements of SSARS No Added a new practice aid which complies with the requirements of SSARS No Added a new practice aid which complies with the requirements of SSARS No Added a new practice aid which complies with the requirements of SSARS No Added a new practice aid which complies with the requirements of SSARS No Added a new practice aid which complies with the requirements of SSARS No. 21. NPO CR 8.6 NPO CR 8.7 NPO CR 8.8 NPO CR 8.9 NPO CR 8.10 NPO CR