AITF issues new auditing interpretation related to SFAS No. 140.

• Position: Accounting & auditing news - Financial Accounting Standards Board - Brief Article

An auditing interpretation, "The Use of Legal Interpretations As Evidential Matter to Support Management's Assertion That a Transfer of Financial Assets Has Met the Isolation Criterion in Paragraph 9(a) of Financial Accounting Standards Board Statement No. 140," of Statement on Auditing Standards No. 73, Using the Work of a Specialist, has been issued by the Audit Issues Task Force.

The guidance has been expanded and updated to reflect changes in accounting guidance that have occurred since a previous interpretation (superseded by this one) was issued early in 1998. Most of the new auditing guidance relates to examples of legal opinions that auditors will need to obtain and review with regard to transfers of financial assets by banks subject to receivership or conservatorship under provisions of the Federal Deposit Insurance Act.

The interpretation is effective for auditing procedures related to transfers of financial assets that are...