Audit Risk Alert

Abstract

Annotation ; New standards for financial statement presentation and revenue recognition have created many not-for-profit financial reporting changes. Combine those with todays 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 theyll 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. Its 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 FASBs 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 FASBs not-for-profit financial statement presentation project Changes to the auditors 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. ;