Audit and Attest

Audit and Attest 

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If you perform audit and attest engagements, the information and resources here will help you stay informed of changes to audit and attest standards, perform your engagements, and be aware of common pitfalls in these engagements.

The Auditing Standards Board promulgates Statements on Auditing Standards (SAS), Statements on Standards for Attestation Engagements (SSAE) and Statements on Quality Control Standards (SQCS), and, as a part of its due process, releases Exposure Drafts of proposed standards. The AICPA also issues interpretive and other publications to assist practitioners in understanding and applying the standards.

Hot Topics

ASB Issues SAS No. 133 on Exempt Offering Documents

The Auditing Standards Board issued SAS No. 133, Auditor Involvement with Exempt Offering Documents (AICPA, Professional Standards, AU-C sec. 945), to address the auditor’s responsibilities with respect to all exempt offerings of securities undertaken pursuant to federal and state securities laws, and similar laws governing franchise offerings. AU-C section 925, Filings With the U.S. Securities and Exchange Commission Under the Securities Act of 1933 (AICPA, Professional Standards), addresses other offerings. Prior to the issuance of SAS No. 133, the AICPA provided best practices specific to issuances of municipal securities in industry-specific auditing guidance appearing in the AICPA Audit and Accounting Guides, State and Local Governments and Health Care Entities. SAS No. 133 amends AU-C section 560, Subsequent Events and Subsequently Discovered Facts (AICPA, Professional Standards), and AU-C section 925, and becomes effective for exempt offering documents with which the auditor is involved that are initially distributed, circulated, or submitted on or after June 15, 2018.

IAASB Releases ED to Revise ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures (ED 540).

On April 20, 2017, the International Auditing and Assurance Standards Board (IAASB) released an Exposure Draft to revise International Standard on Auditing (ISA) 540 (Revised), Auditing Accounting Estimates and Related Disclosures (ED 540).

The primary objective of ED 540 is to address the impending adoption of the international accounting standard dealing with the change from the historical model to the expected credit loss model in accounting for estimates.

Because it is the policy of the AICPA Auditing Standards Board (ASB) to use the ISAs as the base in developing its auditing standards, the ASB believes it is important to track the development of the ISAs since inception.

The AICPA urges members to review the IAASB’s ED 540 and submit comment letters to the IAASB in response.

The comment letter deadline is August 1, 2017.

ASB Issues Statement on Auditing Standards No. 132

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.

Standards Tracker

In an effort to keep its members informed, the AICPA has created a Standards Tracker. This tool will keep members up to date regarding the most recent guidance made available by standard setters, filtered in order to give you only what you need to know.


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