Annual Update: Top Governmental and Not-for-Profit Accounting and Auditing Issues Facing CPAs

Lynda Dennis, CPA, is a professor at the University of Central Florida. She is a former director of finance for the city of Maitland, Florida, where she was responsible for all finance functions including risk management, procurement policies and procedures, investment of City funds, and internal and external financial and operational reporting. Prior to that she was assistant to the chief financial officer-special projects for the city of Orlando, Florida, where she was responsible for assisting the CFO in debt issuance including variable and fixed, new money and refundings, hedge transactions, arbitrage issues and compliance; project financing negotiations for public/private partnerships; cash flow projections for projects; and, preparation, analysis and presentation of cost-benefit studies.

• Chapter 1 1-1GASB Statement No. 87, Leases 1-1Major areas of inquiry 1-2Background 1-3Applicability of GASB Statement No. 87 1-5Terms and their application 1-6Overview of requirements of GASB Statement No. 87 1-9Financial reporting 1-26Implementation challenges 1-27Summary 1-31Chapter 2 2-1Revenue Recognition by Not-for-Profit Entities 2-1Major areas of inquiry 2-2Overview 2-3Accounting for contributions 2-6Agency transactions 2-11Exchange transaction or contribution 2-16Case study 2-22Summary 2-23Practice questions 2-24Chapter 3 3-1Risk Assessment and Related Documentation 3-1Major areas of inquiry 3-2Background 3-3Risk assessment and professional standards 3-5Risk assessment procedures 3-6Understanding internal control 3-9Assessing the risks of material misstatement 3-11Responses to the risk of material misstatement and linking results of risk assessment to the audit procedures 3-13Summary 3-21Practice questions 3-22Chapter 4 4-1GASB Statement No. 83, Certain Asset Retirement Obligations 4-1Major areas of inquiry 4-2Background 4-3Overview of GASB Statement No. 83 4-4Recognition and measurement of AROs 4-6Disclosures relating to AROs 4-11Financial reporting 4-13Implementation challenges 4-14Summary 4-17Chapter 5 5-1Accounting for Special Events by Not-for-Profit Entities 5-1Major areas of inquiry 5-2Overview 5-3Revenue recognition 5-4Reporting costs relating to special events 5-6Special events accounting and reporting considerations 5-8Reporting special events in the statement of activities 5-15Summary 5-17Practice questions 5-18Chapter 6 6-1Audit Sampling 6-1Major areas of inquiry 6-2Overview 6-3Uncertainty and audit sampling 6-5Approaches to audit sampling 6-8Evaluating the results of sampling 6-15Summary 6-18Practice questions 6-19Chapter 7 7-1The Financial Reporting Model for Not-for-Profit Entities 7-1Major areas of inquiry 7-2Overview 7-3Key changes in ASU No. 2016-14 7-4Initial implementation and subsequent application considerations 7-13Summary 7-18Practice questions 7-19Chapter 8 8-1Government Auditing Standards — Independence, Competence, and Continuing Professional Education 8-1Major areas of inquiry 8-2Overview 8-3Independence 8-5GAGAS conceptual framework approach to independence 8-7Provision of nonaudit services to audited entities 8-16Consideration of specific nonaudit services 8-21Documentation 8-27Competence and CPE 8-29Summary 8-34Practice questions 8-35Appendix A A-1ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) A-1ASU No. 2014-09: Revenue from Contracts with Customers, as Amended A-3Appendix B B-1Accounting Standards Update No. 2018-08: Not-For-Profit Entities (Topic 958): Clarifying the Scope and The Accounting Guidance for Contributions Received and Contributions Made B-1Glossary Glossary 1Index Index 1Solutions Solutions 1Chapter 1 Solutions 1Chapter 2 Solutions 4Chapter 3 Solutions 7Chapter 4 Solutions 9Chapter 5 Solutions 10Chapter 6 Solutions 12Chapter 7 Solutions 16Chapter 8 Solutions 18