The Auditing Standards Board of the American Institute of CPAs (AICPA) has issued two new audit interpretations intended to help auditors navigate the pension accounting guidelines for state and local governments that were issued by the Governmental Accounting Standards Board (GASB).
These two interpretations follow on the heels of three other interpretive publications on the GASB pension rules that were released by the AICPA Auditing Standards Board in early May.
In June 2012, the GASB issued two new standards that substantially changes the accounting and financial reporting of state and local government public employee pension plans.
Statement No. 67, Financial Reporting for Pension Plans, revises existing guidance for the financial reports of most pension plans. Statement No. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits.
Statement 67 is effective for financial statements for periods beginning after June 15, 2013, while Statement 68 is effective for fiscal years beginning after June 15, 2014.
The two interpretations issued by the AICPA this week are designed to assist both plan and employer auditors who are auditing entities that are participating in agent multiple-employer plans and implementing the accounting standards. They are:
- Interpretation No. 3, Auditor of Participating Employer in a Government Agent Multiple-Employer Pension Plan, of AU-C section 500, Audit Evidence
- Interpretation No. 2, Auditor of Governmental Agent Multiple-Employer Pension Plan, of AU-C section 805, Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
The interpretations, along with recent white papers related to cost-sharing plans (issued by the AICPA State and Local Governments Expert Panel), are available in the GASB Matters section of the Governmental Audit Quality Center website.