November Newsletter Quotes

The Arizona spent the ensuing years of World War I deployed along the Atlantic coast, mostly on training missions. After the Armistice in November 1918, Arizona crossed the Atlantic to England and then joined the flotilla of warships escorting President Woodrow Wilson to peace talks in France. A second Atlantic voyage to France and across the Mediterranean followed. By 1921, Arizona had made its first transit of the Panama Canal and first crossing of the equator, and came to be home-ported in San Pedro, California, not yet engulfed by greater Los Angeles. High morale and esprit de corps are essential components in any military command, but particularly so aboard ships at sea. BB-39’s can-do motto quickly became “At ’em Arizona” and a newsletter with that name—at first crudely typed but increasingly polished as the years went by—was, as its masthead proudly proclaimed, “Published daily aboard the U.S.S. Arizona wherever she may be.”6

Prayer is spending time with God. ~ Sharon Espeseth         Covered     “And pray in the Spirit on all occasions with all kinds of prayers and requests” (Ephesians 6:18).     Looking back, I recall the many times that I had done stupid things, yet somehow I didn’t get hurt. Specifically, I remember my university days as being full of stupidity. For instance, one cold November evening I decided to leave a house party and walk home. This wouldn’t have been so bad, however, it was 2:00 in the morning, I hadn’t told anyone I was going, and I had to walk 45 minutes to get home. When I think back, I shudder. Any number of bad things could have happened to me.   I made some poor choices, and although I suffered the consequences I sometimes felt as if the consequences were not as bad as they could have been. It recently occurred to me that I was being watched over and protected. I now know that my family frequently prayed for me.   Although I wasn’t serving God at the time, I was being covered in prayer by those who were. I am now led to believe that people I didn’t even know were praying for me. I make this assumption, not because I now know these people, but because I witnessed people praying for complete strangers.   In church and at Bible studies, prayer requests are often made for those we do not know. As part of a Christian writer’s group, I receive prayer requests via email for people I may never meet in my lifetime. Listening to Christian radio stations, prayer requests are voiced for others throughout the country and the world. As a member of many Christian associations, I receive newsletters and phone calls requesting prayer for strangers.   More recently, I witnessed first hand the outpouring of love for strangers through prayer. I was traveling east with a van full of women. We were excited about the conference we were going to together. However, on our drive we saw a slowdown of traffic on the opposite highway. There were police cars, ambulance, and fire truck lights flashing. In the centre of it all was a car, overturned on its roof. Another car was near with a smashed front end. The accident scene looked horrible. We automatically stopped our chatter and took a moment to pray aloud for the victims in the accident. We prayed for complete strangers. Although we may never know who they were, we followed Jesus’ directive to love our neighbours.   It’s comforting to know that my family and I are being prayed for. And I will continue to pray for people I don’t even know.       Prayer is my "alone" time with God. ~ Ruth Smith Meyer        

Peer Reviews Many accountants are asking whether preparation of financial statement engagements trigger a peer review requirement. Here are three questions and answers to help clarify whether your CPA firm is subject to peer review. Question 1 Are public accounting firms required to participate in a peer review program if they only issue financial statements using the preparation guidance in SSARS 21? Based on the AICPA’s rules, the answer is no. But check with your state board of accountancy. Some states require participation in a peer review program even if the AICPA does not. Question 2 If my firm participates in a peer review program, will the financial statement work performed under the preparation guidance be subject to potential review? Yes, the financial statements prepared using the preparation guidance will be included in the scope of the peer review. Question 3 Will compilations be included in peer reviews? Yes. When a peer review is performed, compilations will be included in the scope of the engagement. The issuance of a compilation report does trigger the requirement for a peer review. AICPA Guidance The February 2015 Peer Review Update, a monthly AICPA newsletter, included the following: “On November 18, 2014, the Peer Review Board (PRB) issued an exposure draft, which proposed that firms that only perform preparation engagements under AR-C Section 70 – Preparation of Financial Statements (issued as part of Statement on Standards for Accounting and Review Services (SSARS) No. 21, Statement on Standards for Accounting and Review Services: Clarification and Recodification) would not be required to enroll in the AICPA peer review program (Program). However, it also proposed that a firm’s preparation engagements would be included in the scope of a peer review when the firm either elects to enroll in the program (e.g., to comply with licensing or other requirements) or is already enrolled due to other engagements it performs. This proposal was issued in order to address the effect of these engagements on the scope of the Program. The PRB considered comments raised by the peer review community about the proposal and elected to adopt the proposed guidance changes. The changes are effective for peer reviews commencing on or after February 1, 2015.” Tracking Preparation of Financial Statement Engagements Since the preparation service will be included in the scope of peer reviews, consider that firms enrolled in a peer review program need to track the number of preparation services provided. Otherwise, the peer reviewer will not be able to determine the firm’s mix of work; the peer reviewer uses the total population of a firm’s work to select the sample of engagements to be reviewed. Create a method to track financial statement engagements performed under the preparation standard as early as possible. Peer reviews commencing on or after February 1, 2015, are to include preparation engagements. Given the nature of the preparation service—one that gets turned around quickly—it would be easy for a firm to lose track of how many financial statements were issued using this option. Peer Reviews - A Simple Summary •According to AICPA rules, firms that only perform preparation of financial statement services are not required to enroll in the AICPA peer review program (check with your state board of accountancy to see if their rules are different) •For accounting firms subject to peer review, preparation engagements will be included in the scope of peer reviews •Set up a method to track your preparation engagements; peer reviewers need to know how many preparation engagements your firm issues

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