Planned Parenthood Finance Planned Parenthood Finance Directors Directors Risk Assessment Standards and Changes to the 990 Presented by: Gelman, Rosenberg & Freedman Certified Public Accountants Terri McKnight, CPA, Director, Audit Department Richard J. Locastro, CPA, JD March 26, 2008
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Planned Parenthood Finance Directors Risk Assessment Standards and Changes to the 990 Presented by: Gelman, Rosenberg & Freedman Certified Public Accountants.
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Gelman, Rosenberg & FreedmanCertified Public Accountants
Terri McKnight, CPA, Director, Audit Department
Richard J. Locastro, CPA, JD
March 26, 2008
Gelman, Rosenberg & Freedman, CPAs 2
Eight New Auditing Standards
Collectively referred to as the “Risk Assessment SAS’s” # 104 - #111
Effective for all audits of financial statements for fiscal years beginning on or after January 1, 2007
Requires changes in the audit process Increased effort by your organization and
CPA firm
Gelman, Rosenberg & Freedman, CPAs 3
What is Risk Assessment?
More focused audit approach using the COSO internal framework:
Control Environment Risk Assessments Control Activities Communication and Information Monitoring
Gelman, Rosenberg & Freedman, CPAs 4
What are the Requirements?
Obtain a more in-depth understanding of the organization and its operating environment
Identify specific risks of material errors or fraud occurring and remain undetected by you along with the actions you are taking to mitigate those risks
Perform a rigorous assessment of the risks of material misstatements of your financial statements based on that understanding
Link the assessment with the resulting audit procedures
Meet new documentation requirements
Gelman, Rosenberg & Freedman, CPAs 5
What will CPA firms do differently?
Perform more up-front time planning the audit
Perform new, required planning procedures Evaluate internal control in more depth Reevaluate materiality levels Test some accounts differently Communicate more internal control
deficiencies
Gelman, Rosenberg & Freedman, CPAs 6
Perform new, required planning procedures
Ask more questions about your business risks, responses, and –performance measures