Audit Risk Alert: Not-For-Profit Entities Industry Developments-2018

Description

New standards for financial statement presentation and revenue recognition have created many not-for-profit financial reporting changes. Combine those with today's technology-centered environment and the ever-present scrutiny of exempt organizations by the IRS and watchdog and rating agencies, and accountants, auditors, and financial managers may wonder how they'll ever tackle all the associated risks. This alert takes discusses the important developments affecting not-for-profit entities in 2018, and the issues auditors may face. It's jam-packed with targeted discussions of current economic, accounting, and auditing issues affecting nonprofits, as well as changes on the horizon. Topics range from business environment issues like cybersecurity to accounting and auditing challenges like implementation of FASB's new financial statement standard (ASU No. 2016-14) and valuation of gifts-in-kind. This alert also covers legislative and regulatory issues like UBIT, debt-financed property rules, and tax reform provisions of interest to exempt organizations, as well as the new auditing standard on auditor involvement with exempt offering documents. Among other topics, this alert focuses on risks related to recent nonprofit industry trends, financial statement presentation changes, revenue recognition, and fair value issues. A discussion of tax reform provisions affecting exempt organizations is also included as well as information on emerging issues such as: Revenue recognition for grants and contracts Phase 2 of FASB's not-for-profit financial statement presentation project Changes to the auditor's report Cybersecurity Blockchain and other transformative technology Awareness of key trends affecting the nonprofit environment informs audit planning, risk management, strategic planning, and oversight, thereby promoting greater success and sustainability of not-for-profit entities. Content: Intro Audit Risk Alert 2018 Not-for-Profit Entities Industry Developments: Strengthening Audit Integrity Safeguarding Financial Reporting Notice to Readers Recognition Feedback Table of Contents How This Alert Helps You Economic and Industry Developments The Current Economy The State of NFPs Legislative and Regulatory Developments IRS Exempt Organization Function IRS Issue Snapshots Department of the Treasury and the IRS Issue Priority Guidance Plan for 2017-2018 Listing of Published Guidance-2017 Unrelated Business Taxable Income Issues Functional Expenses Discrepancies Between FASB ASU No. 2016-14 and Form 990Tax Cuts and Jobs Act Matters Affecting Higher Education Matters Affecting Religious Organizations Impact of Rising Minimum Wage Law on NFPs General Data Protection Regulation Audit and Attestation Issues and Developments Audit Risks for NFPs New Auditing Standard on Going Concern New Auditing Standard on Auditor Involvement With Exempt Offering Documents Recent Changes to SOC 1 Service Auditor Reports Auditing Functional Expense Classifications Confirmations Auditing Funds Held at Nonfinancial Institutions Challenges in Auditing GIKTransformative Technology on the Horizon Accounting Issues and Developments Revenue From Contracts With Customers Accounting Standards Updates Effective in 2017 The Net Asset Value Practical Expedient and Readily Determinable Fair Value Clarification of Key Terms in the Definition of Public Business Entity Expiration of the Perkins Loan Program Leases Recent Pronouncements Recent Auditing and Attestation Pronouncements and Related Guidance Recent ASUs Recently Issued Technical Questions and Answers Recent AICPA Independence and Ethics Developments Proposed Interpretations Responding to Non-Compliance With Laws and RegulationsConceptual Framework Implementation Tools and Resources Definition of a Client New Independence Interpretation-Hosting Services Knowing Misrepresentations in the Preparation and Presentation of Information Pressure to Breach the Rules AICPA NFP Initiatives Not-for-Profit Member Section Not-for-Profit Certificate Program On the Horizon Auditing Pipeline Accounting Pipeline Resource Central Publications Continuing Professional Education Webcasts Member Service Center Hotlines AICPA Online Professional Library: Accounting and Auditing LiteratureIndustry Conference AICPA Government Audit Quality Center AICPA Industry Expert Panel-Not-for-Profit Entities AICPA.org Not-for-Profit Interest Area Industry Websites Appendix-Additional Internet Resources EULA