What are the responsibilities of the Financial Accounting Standards Board (FASB)?
The Financial Accounting Standards Board (FASB) was established in 1973 and has since determined GAAP. The FASB is a private-sector body that establishes GAAP for businesses within the United States. This principles and accounting standards that are set forth by the FASB should be deemed unbiased or in favor of any specific industry and should purely be for the overall benefit of the financial statement users (e.g. investors, creditors, lenders).
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What are the CPA exam passing rates for 2020?
2020 was a rollercoaster year for the entire world! However, that didn’t stop CPA applicants from studying and sitting for the CPA exam. The image below illustrates the 2020 passing rates by quarter: The cumulative averages for 2020 were not wildly different than prior years. In Q2-2020, passing rates were extremely high, but these were […]
How to interpret tolerable deviation rate vs actual deviation rate in controls testing?
It is important to understand how control risk factors into the amount of substantive testing that the audit team must perform. As you can see in the visual below, if control risk is higher (as well as inherent risk), that means that the audit team cannot really rely on internal controls to prevent or detect […]
What type of procedures are performed in a review engagement under SSARS?
For a review engagement under SSARS, the accountant will perform limited procedure. Limited procedures consist of inquiry of management and analytical procedures.