A significant period of time has elapsed since the publication in 1986 of the AICPA Audit and Accounting Guide, Audits of State and Local Governmental Units. Many changes have taken place in generally accepted auditing standards and their application and regulatory and financial reporting requirements. These changes have created the need for revised guidance. The objectives of this proposed guide are to provide (1) a general background of the government environment, and (2) practical guidance to the practitioner on the accounting, auditing, and financial reporting for state and local governmental units. The exposure draft contains accounting guidance, some of which was in the 1986 Audit and Accounting Guide Audits of State and Local Governmental Units but not addressed in Governmental Accounting Standards Board pronouncements, and some of which is new guidance. For certain of these topics, the guidance provided is "neutral"â€”that is, the guide presents the alternative accounting possibilities and does not recommend one alternative over another. The final document may or may not recommend a single alternative. In addition, the guide identifies relevant regulations and professional accounting and auditing pronouncements and summarizes key provisions of those regulations and pronouncements. This proposed guide would supersede: 1. The 1986 Audit and Accounting Guide, Audits of State and Local Governmental Units, and all subsequent editions. 2. AICPA Statement of Position (SOP) 92-7, Audits of State and Local Governmental Entities Receiving Federal Financial Assistance.
American Institute of Certified Public Accountants. Government Accounting and Auditing Committee, "Proposed audit and accounting guide : audits of state and local governmental units ;Audits of state and local governmental units" (1993). Statements of Position. 583.