Professional Documents
Culture Documents
Presented by:
Flo Ostrum, Grant Thornton LLP
Objectives
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Economic And Industry Developments
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The State of the Economy
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The State of the Economy
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Critical strains to economy and business
environment
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Risks
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Risks
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The State of Not-for-profits
• Growth industry
• As of 9/30/06 – 1.6 million
• Auditor expectations:
– regional and national conditions
– health of local labor market
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The State of Not-for-profits
• Corporate sponsorship
– goals of sponsors = goals of organization
• Funding Administrative Costs
• Retiring workforce
• Cyber donations
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Internet Fund-Raising
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Internet Fund-Raising
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E-Philanthropy
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E-Philanthropy
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E-Philanthropy
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E-Philanthropy
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E-Philanthropy
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Risks
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Objectives
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Audit And Attestation Issues And
Developments
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Alternative investments
Quick overview
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Alternative investments
Quick overview
Fair Value of equity security is "readily determinable" if:
• Sales price or bid/ask quotation is currently available on a securities
exchange registered with SEC or in over-the-counter market, provided
those prices or quotes for the OTC market are publicly reported by
NASDAQ systems or by the National Quotation Bureau, or
• Traded only in foreign market---that foreign market is a of a breath and
scope comparable to one of U.S. markets referred to above, or
• Mutual fund – FV per share is determined and published and is basis for
current transaction
© Grant Thornton
Alternative Investments
Quick overview summary
• Generally investment vehicles other than stock, bonds, and mutual funds
– Not a defined GAAP or GAAS term
– Not traded on a national exchange such as NYSE or Nasdaq
Hedge funds
Fund of funds
(LPs, LLPs, LLC, Ltds, Inc.)
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Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
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Applying lessons learned…
1 2 3 4 5
Management can never, ever prepare TOO much documentation for its
alternatives
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
6 7 8 9 10
© Grant Thornton
Applying lessons learned…
1 2 3 4 5
Auditing alternatives is like auditing AIR…you know it's there, you just
can't see or get your hands around it
6 7 8 9 10
© Grant Thornton
Guidance and focus
Management Auditor
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What management must do
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What management must do
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What auditors must do
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What auditors must do
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Summary
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Alternative Investments - Risks
© Grant Thornton
Statement 158 - Employers' Accounting for Defined
Benefit Pension and Other Postretirement Plans
Overview
Statement 158 represents Phase I of a comprehensive project
on employers’ accounting for postretirement benefit plans
Phase I Phase II
Requires: May reconsider all aspect of
• recognition of the funded status postretirement benefit
on the statement of financial accounting including
position measurement issues
• recycling of amounts recognized
in other comprehensive income
• alignment of the measurement
date with the date of the
statement of financial position
© Grant Thornton
Applying Statement 158
Objective
Primary changes
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Applying Statement 158
Debrief
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SAS 103 Audit Documentation
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Practice Alert 07-1, Dating of the Auditor's
Report and Related Guidance
• SAS 114
• SAS 112 practice issues
• Risk assessment standards (applicable June 2008)
• Practice Alert 07-1
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SAS 114, "The Auditor's Communication with
Those Charged with Governance"
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SAS 112, "Communicating Internal Control
Related Matters Identified in an Audit"
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SAS 112, "Communicating Internal Control
Related Matters Identified in an Audit"
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Guidance on Evaluating Control Deficiencies
in a Single Audit
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Guidance on Evaluating Control Deficiencies
in a Single Audit (cont.)
• Guidance:
– AICPA Audit Risk alert
– AICPA Audit Guide
• understand and implement
• examples
• in-depth case study
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What's not coming up.
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Objectives
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Internal Revenue Service Activities
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Other
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Internet Based Workshop for Exempt Orgs
• tax-exempt status
• UBIT
• employment issues
• Form 990
• required disclosures
• www.stayexempt.org
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Independent Sector
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Risks
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AICPA Governmental Audit Quality Center
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AICPA GAQC Home Page
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Center Resources
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Center Resources
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Center Resources
• Teleconferences
– What You Should Know About the 2007
Revision of Government Auditing Standards
– Impact of SAS 112 on Governmental Financial
Audits
– What You Should Know about Recent Proposed
FASB NPO Exposure Drafts on Accounting for
Mergers and Acquisitions
– Avoiding the Most Common Single Audit
Deficiencies
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GAQC Updates and Alerts
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AICPA Assistance
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Any questions?
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Head to your next destination
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