Auditors are comparing notes on how they will interact with audit committees and management regarding a new accounting approach to credit losses, and they’ve produced a guide that might be informative to preparers.
The American Institute of Certified Public Accountants has developed non-authoritative professional guidance intended to help auditors when communicating with audit committees regarding Accounting Standards Codification Topic 326. That’s the new standard from the Financial Accounting Standards Board requiring companies to use a “current expected credit losses” approach, or CECL, to recognize credit losses in financial statements.
