02/18/2025

Well, hi there! Sit back, enjoy, and relax as you’re currently on the Daily Accrual.

Every day, I sift through the accounting noise so you don’t have to. I share to you the most relevant, juicy accounting insights that really matter – nothing phony, just some good, accounting testimony! 

📝 Journaling Insider

The AICPA Auditing Standards Board (ASB) has approved two exposure drafts for public comment, expected by late February or early March, with a 90-day comment period.

1. Sustainability Review Engagements: The first draft proposes change to AT-C Section 210 in response to changing sustainability reporting regulations. The option for practitioners to issue a qualified conclusion or disclaimer in attestation reviews when a scope limitation exists is introduced. If finalized, the standard will apply to review reports dated on or after December 15, 2026, with early adoption permitted.

2. GAAS Revisions: The second draft amends AU-C Sections 330, 500, and 505 to improve external confirmation procedures in financial audits. These updates aim to strengthen audit quality for non-issuer of financial statements while maintaining efficiency. If approved, the changes will be effective for financial statement audits ending on or after December 15, 2027, with early application allowed.

These proposals demonstrate the ASB’s proactive stance in establishing auditing standards with evolving accounting regulatory and business industry needs.

Source: Journal of Accountancy 

💰 Making Cents of Accounting

#MaterialityPrincipleWho?💰⚖️

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💸 Profit & Loss Report

The Australian Taxation Office (ATO) introduced its 2025 Fraud and Corruption Control Plan to address growing fraud and corruption risks. The risk management plan helps employees, contractors, tax agents, and businesses identify vulnerabilities, implement controls, and report fraudulent activities. It aligns with government requirements, emphasizing insider threats where employees or contractors misuse access to sensitive information. 

The ATO has a zero-tolerance policy for fraud and corruption, emphasizing the need for  prevention, early detection, and problem mitigation. Key components include risk tolerance, integrity measures, whistleblowing, and reporting protocols, all framed within a prevention, detection, and response model. The Commissioner of Taxation urged professionals to integrate the plan into decision-making and report suspicious activities, reinforcing accountability, fairness, and trust in Australia’s tax system.

Source: Accountants Daily

💎 Rare Accounting Oddities

And no, it’s not Tax Day! International Accounting Day started in 1972 with the San Diego chapter of the California Society of CPAs, though some give credits to the Institute of Management Accountants for the idea. By 1976, it became a worldwide celebration, inspiring future accountants and globally recognizing the profession’s impact.

Today, the Accounting Education Institute (AEI) leads the change, offering networking events, various scholarships, and real-world career opportunities for aspiring students. So next time you’re balancing those financial statements, remember—you’re an essential part of the accounting world, and we have our days to be celebrated for all that we do!