How CPAs should handle "comfort letter" requests

The AICPA helps clarify professional ethical obligations when asked for "comfort letters" by lenders and mortgage brokers. Depending on how practitioners respond to such requests, they may be at risk for failing to comply with AICPA professional standards. The letter at issue is usually associated with stated-income loans, which are mortgages that do not require borrowers to document their income. Read this AICPA article to see how CPAs can protect themselves against the risks associated with these situations
http://www.aicpa.org/download/acctstd/How_CPAs_Should_Handle_Requests_from_Mortgage_Brokers.pdf

IAASB standard on controls at service organizations

IAASB issued an assurance standard on controls at service organizations,
Recognizing the widespread international use of outsourcing, it released International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization. The standard addresses reports on the description, design and operating effectiveness of controls relating to the broad range of services that service organizations provide. It is effective for service auditors' reports covering periods ending on or after June 15, 2011. The Journal of Accountancy has this story at http://www.journalofaccountancy.com/Web/20092446.htm

SSARS #19

Statement on Standards for Accounting and Review Services No. 19, Compilation and Review Engagements, was officially issued Dec. 30, 2009 and is effective for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010, with one exception. That exception, which may be implemented immediately, permits an accountant to include a description in the accountant's compilation report regarding the reason(s) for an independence impairment. Major new provisions that will be effective on or after Dec. 15, 2010, include introducing the term "review evidence," incorporating a discussion of materiality in the context of a review engagement and requiring the CPA to obtain an engagement letter for all SSARS engagements. For resources related to the new standard, visit www.aicpa.org/reliability.

Contingent Liability clarification

IASB issued an exposure draft to offer clarity on liabilities related to legal settlements as well as the decommissioning of major assets like factories. This draft is available for comment until April 2010.
http://cfo.com/article.cfm/14466024/c_14466158?f=home_todayinfinance