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February 2021 Edition
 

In February, the AICPA issued a mammoth proposal impacting quality standards. The proposal, Proposed Statements on Quality Management Standards—Quality Management: A Firm’s System of Quality Management; Engagement Quality Reviews/Proposed Statement on Auditing Standards, Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards, includes three different standards (each of which was the focus of a blog this month). This proposal will impact how your firm operates in the future, so we recommend viewing our summaries. Comments are due June 11th.

Outside of this impactful proposal, the AICPA also issued both an ethics interpretation as well as a proposed SAS on noncompliance with laws and regulations (NOCLAR). Proposed SAS Inquiries of the Predecessor Auditor Regarding Fraud and Noncompliance With Laws and Regulations, requires discussion with the predecessor auditor; while the proposed ethics interpretation, Responding to Noncompliance With Laws and Regulations, is intended to assist with convergence with international requirements. The proposal provides definitions of NOCLAR as well as guidance on the CPAs response to NOCLAR.

Neither FASB nor GASB issued any proposed or issued standards. That is probably a good thing as we enter the heart of busy season!

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LATEST FROM GALASSO LEARNING SOLUTIONS
 

While vaccines are starting to make their way into the arms of some CPAs around the country, for many it will be a long time before they qualify. We are getting a lot of questions about what 2021 will bring in terms of in-person training. Looking to the AICPA, they have moved their May Council meeting to virtual and their EBP conference virtual. As of the drafting of this newsletter, ENGAGE which is in June is still planned to be hybrid (live in Vegas with an online alternative). For GLS, most clients have elected to stay virtual through the summer. As a result, many trainings are being offered in two or four-hour series instead of full-day sessions. However, there are a few clients who are still hoping for on-site. We plan to monitor the CDC and state guidelines and will make informed decisions as trainings start to pick up. We believe that safety should always be the priority and the improvements in virtual experiences make webinar-based training a great alternative for most groups while we patiently (or sometimes not so patiently) wait for herd immunity. 

Melisa was able to attend a full-day live online session with Disney Institute in February and it was great to see many of the tools and techniques leveraged at GLS are still deemed best in class. Many of you are deep in busy season right now. Sending positive vibes for a peaceful close!

 
Catch up on the Latest GLS Video Blogs
 
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February 25, 2021: The final blog in our QM series addresses the proposed audit standard. The audit standard assists the engagement team to understand their responsibilities on applying the system of quality management to an individual audit engagement. Comments are due June 11, 2021.
 
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February 18, 2021: This week’s blog continues with the discussion of the AICPA’s proposed changes to Quality Management. SQMS 2 addresses the role and responsibilities of the engagement quality reviewer. We’ll look at the proposal including the proposed cooling off period and qualifications to give you an overview of the proposed standard.
 
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February 11, 2021: The AICPA has issued three new proposals related to quality management. The new SQM Standards will replace the extant quality control (SQCS) and provide a more scalable and risk based QM methodology. This is the first of three blogs which will dive into the details of each proposal. This blog addresses A Firm’s System of Quality Management and the components of a system of quality management.

 
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February 4, 2021: The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a Temporary Policy Statement regarding the recent changes by the SEC to their independence rules. Because the rules do not align with the AICPA Code, while PEEC evaluates whether any changes are needed, PEEC has provided a temporary enforcement permitting auditors who follow both to be compliant if they adopt the new SEC rules. The policy is effective until rescinded.
 
 
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Are you looking for an update on not-for-profit accounting? Need 2 CPE accounting credits? Well, you’re in luck! 

Join Susan Stutzel on May 25th at 1pm EST as she presents “What’s Going on in NFP Accounting.” Susan will look at recently issued standards directly impacting nonprofit entities and also review FASB standards that can impact various Not-For-Profits. She will close with a look at some COVID accounting impacts. This course will help preparers and auditors think about the big picture items they need to be considering for nonprofit financial reporting.

Susan specializes in nonprofit auditing and consulting. For nearly two decades, she has worked in both public and private accounting, and in that time discovered her passion lies in serving clients in the nonprofit industry. Her desire to work with nonprofit organizations stems from a desire to be surrounded by equally passionate individuals who want to change the world.

 
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GLS customizes training using instructional design techniques and a unique needs assessment to provide the right mix of learning experiences to each of our client partners. This means that our courses are designed for adult learners and the topics we cover are customized to the needs of your team.
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#ENGAGE2021
 
Change is constant! Stay ahead by attending the Advanced Accounting and Auditing Conference to deep dive into highly relevant, advanced technical content to help you stay at the forefront of new standards and emerging issues. Join our Founder/CEO, Melisa Galasso, at AICPA & CIMA Engage 2021 from June 7-10 either virtually or onsite in Las Vegas. This conference will allow you to gain exclusive insights, develop practical skills, and network with our unique professional community. There are substantial changes to A&A rules, and it is crucial to get a firm grasp around implementing them. If you want to evolve your knowledge of A&A changes while attending an unforgettable, invaluable, and one-of-a-kind career opportunity REGISTER now! Use code ENG21NAAA to save $100.
 
 
 
Where in the World?
 
For President's Day Weekend, Melisa and her family vacationed in Lake Tahoe. They visited Sand Harbor Beach and enjoyed spending time in nature together even if it was a little chillier than expected. No trip to Tahoe would be complete without a boat ride on the MS Dixie II and hitting up the slopes for some skiing. Overall, this was a relaxing vacation in nature that Melisa and her family appreciated. A surprise highlight of the trip was visiting a Del Taco! If you've attended some of Melisa's classes on goodwill impairment, you heard that Del Taco was used as a test case by the AICPA's TIC when presenting to FASB. Melisa has never been to a Del Taco and was excited to check that off her bucket list. For those of you who are east coasters, it's like Taco Bell and not like a Mexican restaurant! Cleared that up!
 
 
 
Year of the Ox
 
On February 12, the Year of the Ox began according to the Chinese Lunar New Year. The Ox occupies the second position in the Chinese zodiac. Were you born in the year of the Ox? Recent zodiac years of the Ox are 1961, 1973, 1985, 1997 and 2009. If so, Oxes are known for having an honest nature. They are diligent, dependable and determined. Lucky colors for the ox include white, yellow and green with the unlucky color of blue. Lucky numbers are 1 and 4 with unlucky numbers being 5 and 6. If your zodiac sign is an ox, consider yourself among some good company. Barack Obama, Vincent Van Gogh, Walt Disney and Margaret Thatcher were all born in  the year of the ox.

So here's to all of our subscribers that are Oxes - enjoy your year and make it the best one yet!
 
 
 
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