Investment Companies Industry Developments - Audit Risk Alert

Find out about important issues affecting the investment company industry and how current developments affect auditing in this industry. This Audit Risk Alert focuses on economic and industry developments, as well accounting, attest, and auditing issues. This alert also provides you with regulatory updates from the SEC and the CFTC.
New accounting and auditing guidance and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include:

• SEC Release Nos. IA-2968, Custody of Funds or Securities of Clients by Investment Advisers, and IA-2969, Commission Guidance Regarding Independent Public Accountant Engagements Performed Pursuant to Rule 206(4)-2 Under the Investment Advisers Act of 1940
• ASU No. 2011-04 Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
• Proposed ASU - Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements
• Proposed ASU - Real Estate—Investment Property Entities (Topic 973)
• RIC Modernization Act of 2010

This alert also includes information on emerging issues such as:

• The Dodd-Frank Wall Street Reform and Consumer Protection Act
• SEC’s proposed rule Release No. IC-29367, Mutual Fund Distribution Fees; Confirmations

To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You’ll not only find targeted discussion of new developments and considerations, but also a look at what’s in the pipeline that may affect your engagements.

This Alert is intended to be used in conjunction with the Audit Risk Alert General Accounting and Auditing Developments—2011/12 (product no. 0223311), which explains important issues that affect all entities in all industries in the current economic climate. General topics include recently issued ASUs on receivables, fair value, business combinations, troubled debt restructuring and goodwill, and emerging audit risks such as those associated with the billion dollar structured securities industry.
For a topical listing of subject matter by chapter, click on the Table of Contents tab.