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SAS issued on GAAP hierarchy revision.

The American Institute of CPAs auditing standards board has issued Statement on Auditing Standards no. 69, The Meaning of "Presents Fairly in Conformity With Generally Accepted Accounting Principles" in the Independent Auditor's Report. SAS no. 69 revises AICPA Professional Standards AU section 411 and changes the authority of statements of position, audit and accounting guides and practice bulletins issued by the AICPA accounting standards executive committee as well as Financial Accounting Standards Board emerging issues task force consensuses in the GAAP hierarchy. The SAS establishes two separate but parallel hierarchies: one for state and local governments and one for private nongovernment entities.

For example, the revisions require a nongovernment entity following an industry accounting practice to change to an accounting treatment specified by AICPA SOPs cleared by the FASB and effective after March 15, 1992. Since EITF consensuses will have a greater authority than in the existing GAAP hierarchy, nongovernment entities are required to change their current accounting practices to follow the consensuses reached after March 15, 1992.

SAS no. 69 will appear in the March Journal of Accountancy, along with a special report on its implications. Copies of the statement are available at $5 each from the AICPA order department, P.O. Box 1003, New York, New York 10108-1003. Request product no. 060442. Telephone: (800) 334-6961 [(800) 248-0445 in New York State].
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Title Annotation:statement on auditing standards, generally accepted accounting principles
Author:Baliga, Wayne J.
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Feb 1, 1992
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