From OCBOA to Special Reports

We are all aware of the AICPA Auditing Standards Board’s (ASB) project on clarifying and converging SASs with with International Statements on Auditing (ISA). One of the auditing standards is AU 623 Special Reports. The ASB has released Proposed SAS, Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks. This proposed SAS changes much of the terminology that we are used to when preparing OCBOA financial statements. In fact the very term “OCBOA” will be replaced with “special purpose frameworks.”

Special purpose frameworks are defined as financial reporting frameworks other than generally accepted accounting principles (GAAP). These include cash basis, tax basis, regulatory basis, and contractual basis. Cash basis, tax basis, and regulatory basis of accounting are commonly referred to as "other comprehensive bases of accounting" (OCBOA).


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