Author Archives: Charlie Blanton, CPA

As we enter the final stretch of 2020, not-for-profits are grappling with two new contribution standards. The first standard is ASU No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. While this standard was issued in 2018, many not-for-profits are still implementing its guidance related to distinguishing contributions from exchange […]

In recent years, both the FASB and GASB have developed new leasing standards. While both standard-setters wrote their standards at essentially the same time and place, they came to different conclusions in certain key areas. However, one key area where both the FASB and GASB are in alignment is that to have a lease you […]

Perhaps I’ve over-hyped the title to this blog post a little by using the word “thriller.” However, if COVID-19 has relegated a planned summer vacation from a trip to the coast to wading in a backyard kiddie pool with your dog staring at you, you’re a little desperate for entertainment. Good news, since the new […]

In recent years, a constant mantra of the AICPA’s peer review and technical staff has been that auditors are struggling with the risk assessment standards (primarily AU-C sections 315 and 330). Common deficiencies cited by the AICPA include: [1] auditors failing to gain an understanding of internal control when identifying the client’s risks; [2] incomplete […]

Sometimes, not-for-profits and governments can be tempted to not take their grant applications and reporting seriously. However, entities which choose this path do so at their own peril. For example, in March 2019, Duke University agreed to pay the federal government $112,500,000 to resolve claims that it violated the False Claims Act by submitting applications […]

The 2018 Yellow Book is effective for financial audits for periods ending on or after June 30, 2020. However, that does not mean that auditors can wait until 2020 to become familiar with the new standards. A prime example of why early familiarity is necessary lies in the area of independence. Under the Yellow Book, […]

Throughout 2019, not-for-profit entities (NFPs) are implementing ASU No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. ASU No. 2016-14 allows flexibility in how and where certain information is presented. Recently, I reviewed the audited financial statements for 20 NFPs which have implemented ASU No. 2016-14 to see the choices they are making. NFPs are […]

We’ve all been there. In a meeting to discuss a significant change that is occurring we sense that we should say something. But what? This scenario closely aligns to what many firms are encountering as they audit the first round of not-for-profits that have implemented ASU No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. […]

While the Yellow Book has been around since 1972, it was the 1988 revision of the standards which first established specific hourly CPE requirements for auditors working on Yellow Book engagements. The genesis of the CPE requirements stems from auditing history and experience as much as anything. When auditors leave college, they typically have little […]

As December 31, 2018, draws nigh, not-for-profits are thinking more and more about the implementation of ASU No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. Under ASU No. 2016-14, not-for-profits continue to be required to provide information about expenses by their functional classification either on the statement of activities or in the notes to […]