|ASB Issues Statement on Auditing Standards No. 130
The AICPA Auditing Standards Board has issued Statement on Auditing Standards No. 132 , The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (AICPA, Professional Standards, AU-C sec. 570), to supersede SAS No. 126 of the same title. In developing the new SAS, the primary objective was to consider the accounting provisions of FASB Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, and GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. The SAS becomes effective for (i) audits of financial statements for periods ending on or after December 15, 2017, and (ii) reviews of interim financial information for interim periods beginning after fiscal years ending on or after December 15, 2017.
Learn more in an AICPA Explanatory Memorandum and in an upcoming webcast.
ASB Issues SSAE No. 18 and Completes Attestation Clarity Project
The AICPA’s Auditing Standards Board (ASB) has completed its clarity project with the issuance of Statement on Standards for Attestation Engagements (SSAE) No. 18, Attestation Standards: Clarification and Recodification, which clarifies the SSAEs (also known as the attestation standards).
The attestation standards establish requirements for performing and reporting on examination, review, and agreed-upon procedures engagements that enable practitioners to report on subject matter other than historical financial statements, for example, an entity’s compliance with laws or regulations, the effectiveness of an entity’s controls over the security of a system, and the fairness of the presentation of a statement of greenhouse gas emissions.
SSAE No. 18 is effective for practitioners’ reports dated on or after May 1, 2017.
Learn more about the AICPA Attest Clarity Project.
SAS No. 131 Issued to Clarify Jurisdictional Issues in Auditor Reporting Requirements
The Auditing Standards Board has issued SAS No. 131, Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards, AU-C sec. 700), to clarify the format of the auditor’s report that should be issued when the auditor conducts an audit in accordance the standards of the PCAOB, but the audit is not under the jurisdiction of the PCAOB.
The amendments are effective for audits of financial statements for periods ending on or after June 15, 2016; however, application of the SAS before the effective date is permitted.
Access the Executive Summary.
For more information visit the AICPA's Auditing Clarity Project area.
Illustrative Service Auditor’s Report In Accordance With AT 801 and ISAE 3402
The Service Organizations Task Force of the AICPA’s Auditing Standards Board has developed an illustrative service auditor’s report for use when a service auditor is reporting on a description of a service organization’s system and the suitability of the design and operating effectiveness of controls (type 2 report) under both AT section 801, Reporting on Controls at a Service Organization (AICPA, Professional Standards), and International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization. The illustrative report is intended for reports dated on or after December 15, 2015.