Auditing Standards Board Agrees to Defer SASs 134-140 For One Year

The Auditing Standards Board just issued Statements on Auditing Standards 141, which delays required implementation changes to auditor’s reports for audits and employee benefits plans from reporting periods ending from December 15, 2020 to December 15, 2021, with early adoption permitted.

These new reporting standards will change auditor’s reports and management’s responsibilities as follows:

Statement on Auditing Standards (SAS) 134, Auditor reporting and amendments, including amendments addressing disclosures in the audit of financial statements: The new standard makes significant changes to the layout and information to be included in the auditor’s report.  The new audit report will also provide for the option to report on key audit matters in the body of the report. The SAS standard was developed to better align reporting standards with those of the international and public company auditor reporting standards.

SAS 136, Forming an opinion and reporting on financial statements of employ benefit plan subject to ERISA: The new standard provides changes similar to those of SAS 134 to be included in the auditor’s report and will also eliminate the “disclaimer of opinion” as well as the reference to limited scope audits. The standard will also provide clarification on management’s required representations and responsibilities.

We will contact our clients to discuss how the additional auditor’s opinion requirements may be beneficial to the company’s overall financial statement reporting.

Spiegel is Working to Support Feeding America

Spiegel has teamed up with Feeding America in its effort to assist the millions of newly unemployed people in our communities who are turning to food pantries for help.

Your gift of $50, $75, $100, or whatever you choose to provide will help support local food banks in the Feeding America network as they work to meet the increased demand. Please give today.

Feeding America, the nation’s largest domestic hunger-relief organization, with a network of 200 member food banks across the country, established the COVID-19 Response Fund to help food pantires across the country as they support communities impacted by the pandemic.

The $2.65 million fund will enable food banks to secure the resources they need to serve the most vulnerable members of the community during this difficult time. Still, it is impossible for the Feeding America network to address this pandemic without public and government support, so that food banks can do what they do best — feed people in need within their communities.

Did You Really Qualify For PPP?

Did you receive money through the Paycheck Protection Plan that you’re not entitled to? There are ramifications if you actually do not qualify. The section, below, from a SBA document provides the answer.

Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application.

Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.

Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.11

Source:

Small Business Administration in partnership with the Department of the Treasury

4/23/2020

 

What You Should Know About the CARES Act

We’ve unpacked the information for you.

In response to the coronavirus pandemic, the CARES Act was signed into law on Friday, March 27, 2020.  The Spiegel team has compiled the necessary information within two separate documents regarding:

  • postponed dates for tax filings, payments and program contributions; and
  • resources for financial relief and assistance for individuals and businesses

There are time limits in which to take advantage of certain benefits.

We encourage you to review both of the attached information sources (links below) and contact us if you have any questions.
CARES Act Information
CARES ACT Overview of PPP and EIDL