Exposure draft of SOP issued on audits of investment companies.

• Position: Accounting & auditing news - American Institute of Certified Public Accountants issues statement of position - Brief Article

The AICPA's Accounting Standards Executive Committee has issued an exposure draft of a statement of position, Clarification of the Scope of the Audit and Accounting Guide Audits of Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies. The proposed SOP provides specific conditions for determining whether an entity is within the scope of the AICPA Audit and Accounting Guide Audits of Investment Companies. For those entities that are investment companies under the SOP, the SOP also addresses the retention of that specialized industry accounting by a parent company in consolidation or by an investor that has the ability to exercise significant influence over the investment company...